In an economic downturn, Collections becomes the tip of the spear in consumer lending. But greater contact intensity doesn’t automatically translate to higher collections. Blanket strategies can backfire with regulators and borrowers alike, especially with Regulation F now in play since the last recession. Banks need to be particularly buttoned up when it comes to contact and collections strategies.
This is critical for regional and community banks as they begin hitting thresholds where regulatory scrutiny increases. Agility is paramount when navigating the dynamic landscape of changing regulations.
That’s why Spinnaker’s approach to collections and loss mitigation is deeply data-informed, compliance-aware, and built in partnership with your team. We deliver customized solutions that build upon your existing strategies and infrastructure. Our plans are responsive to real-world volume surges, evolving regulatory expectations, and the human side of financial hardship. Since the last recession, not only have we added Reg F to the FDCPA at the federal level, but we're also witnessing a significant shift towards more state-specific regulatory environments, requiring larger banks to navigate 50+ sets of rules based on their customer base.
Our Collaborative Approach
We start by reviewing your current collections strategy, segmentation logic, performance data, and operational capacity. Then, we partner closely with your teams—across risk, operations, and compliance—to co-develop a loss mitigation framework that is truly strategic, scalable, and regulator-ready.
What We Build Together
1. Segmentation-Driven Contact & Treatment Strategies
Segmentation often provides the most significant collections upside during turbulent times. This allows banks to focus efforts on their highest-value accounts based on expected return versus collection time, prioritizing the most efficient dollar to collect. Together, we:
2. Phase-Based Collections Playbooks
We develop distinct playbooks for early-stage (1–29 DPD), mid-stage (30–89 DPD), and late-stage (90+ DPD) collections. These playbooks:
We help prepare your operations to react effectively when delinquencies hit a critical point. Our plans include:
We provide clear visibility into performance every step of the way, including:
Key Tools & Levers We Help You Deploy
We guide your team in evaluating, designing, and implementing essential collections tools to increase recovery, support borrowers, and ensure fairness and consistency. Examples include:
Why Spinnaker’s Approach Works
We build collections programs collaboratively with your strategists, operators, analysts, compliance officers, and vendors all at the table – never in a vacuum. Your collections organization already possesses significant strengths and invaluable first-hand experience. We build upon those strengths with robust structure, insightful data, and strategic foresight. Our plans are in fact:
The result: collections strategies that perform under pressure, protect your brand, and preserve valuable customer relationships in the toughest of environments. You will reap the benefits for years to come – even as the economy continues to evolve.
Why Spinnaker?
We’re former operators, risk leaders, and strategists in the banking industry who’ve been in your shoes. Every consultant on our team has over 10 years of real-world experience leading credit risk, collections, compliance, and analytics functions at banks and fintechs. We have managed through the last recession and the pandemic. We know what works because we've done the work. That’s why our solutions are practical, actionable, and designed to perform in the real world.
Contact us today for an exploratory conversation: Shawn.Sweeney@SpinnakerConsultingGroup.com