The coronavirus pandemic has taken a still-almost-unimaginable hit on our nation’s economy. Millions of people have lost their jobs, and millions more are facing financial insecurity with paychecks that cover fewer hours. With concerns rising over an imminent recession, is your bank prepared to offer consumers the right help and resources to prevent charge offs with its Home Equity Line of Credit (HELOC) business?
When first approached by a bank that needed help resolving a compliance issue with its HELOC Collections team, Spinnaker took a deep dive beyond those initial symptoms to uncover root causes that were preventing the organization from effectively supporting customers navigating the current economic environment.
We started with a comprehensive assessment of the existing environment to identify strategic opportunities, as well as compliance gaps spanning people and operations. Learnings from that analysis informed new models, decisioning tools and customer repayment resources, creating a better-managed Collections team that meets rigorous regulatory requirements.
Our strategy delivered tailored charge-off, recovery and forecasting models, along with management reporting and trigger alerts. With our collaboration, the client designed helpful debt assistance support for customers. The improved Collections environment has reduced risks and positioned the bank to meet regulatory compliance standards. The bank also gained enhanced data analytics, which identifies trends and opportunities.
Read our HELOC case study to explore how Spinnaker helps banks position their HELOC Collections to be more effective.
If your customer is in the throes of a major hurricane, is it the right time to attempt collections?
Business Analytics & Data Management 4 minute read
In the 10 years following the Great Recession, significant numbers of home equity lines of credit (HELOCs) were booked. Now, as we navigate another recession, the balances on those accounts are catching up with customers – and the banking industry – in a big way.
Customer Channels & Operations Management, Process Development, Compliance 5 minute read
Many of the nation’s top-tier banks are inching along the adoption curve and redefining themselves as fintechs. With many drawing the spotlight as market darlings, fintechs – led more often by tech whizzes than bankers – are revolutionizing banking through targeted applications of rapidly emerging technologies. In bare bones terms, the fintech mission is to find better ways to do business, whether it’s through a consumer-facing capability or a back-end process. Success lies in carving out a niche by providing sharply focused solutions, usually to a pain point (or two) that regularly frustrates consumers. Fintechs’ size and sophistication range from mom-and-pop virtual startups to subsidiaries of major technology companies, including IBM, which is top ranked for using artificial intelligence in banking. While smaller tech companies with sexy solutions tend to get a lot of the buzz, you can’t have blinders on to the broader fintech ecosystem when your organization is trying to fill in the blanks around what it needs from a capabilities standpoint. Only those banks in, say, the top 10 in assets have the in-house technological horsepower and deep financial pockets to envision and develop these savvy offerings themselves. They might carve out a group of digital talent and establish a think tank, where they leverage design thinking and other smart tools to dream up and build internal apps. On the flip side, some banks are opting to act as venture capital firms, injecting cash into smaller fintechs that, in turn, develop unique capabilities that align with the customer experience banks want to provide. Fintechs embrace agile methodology and the newest technology, often built on more flexible back-end platforms that allow them to execute on new ideas quickly, ship code rapidly and get to market sooner. They cycle through test, learn and adapt in the time it takes a conventional bank to convene a meeting. But all that rapid innovation doesn’t mean they don’t have staying power – this market segment is projected to nearly triple, reaching just under $310 billion by 2022. That means fintechs are doing something right – starting with not trying to be all things to all players. That means banks need to take the right lessons away from the evolution that’s taking place around them.
Customer Channels & Operations Management, Business Strategy, Change Management 5 minute read
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