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New software to help combat record Asia Pacific debt

Ross O. Storey | Sept. 29, 2010
FICO urges lenders to re-examine their debt management systems

SINGAPORE, 29 SEPTEMBER 2010 - With consumer debt and defaults increasing in the Asia Pacific to historically high levels, a new software solution has been launched to help lenders accelerate collections and reduce operating costs.

Analytics and decision management technology provider FICO has announced the release of a complete re-design of their core collection systems FICO Debt Manager version 8.

FICO says the percentage of default across all debt types including credit cards in the 21 - 29 year age bracket in Singapore, was an overwhelming 7.16 per cent in December 2009, up from 5.07 per cent in January 2009.  

In Malaysia, outstanding credit card balances are still rising, and have reached RM25.74 billion (US$8.34 billion).

The non-performing credit cards percentage in Indonesia is at 5.04 per cent or worth IDR48.25 billion (US$54 million).

Complete re-build

FICO Debt Manager 8.0 is much more than a product upgrade, says Dattu Kompella, FICO's senior director, Australia, ASEAN and India.

We rebuilt it completely to address the new reality that lenders face in trying to collect what they are owed, avoid charge-offs and reduce attrition. Lenders can expect to see real productivity gains as well as strategic advantage from deploying this new product.

Among its key enhancements, FICO Debt Manager 8.0 is claimed to be the first collection system to integrate adaptive control technology, built-in analytics and events-based design, which enable organisations to design, test, compare and continually refine their strategies that improve effectiveness in collections and respond to changes in real-time.

FICO says its new solution is built entirely on a services-oriented architecture (SOA) allowing for faster and easier upgrades, eliminating the rip and replace' cycle and lowering the total cost of ownership.

Total CRM view

The SOA also allows for sharing of data with other FICO applications across the credit lifecycle, says the firm, resulting in connected decisions based on a total customer relationship view, the company says.

FICO says its collections and recovery solutions are used by leading lenders around the world, including two-thirds of the top 25 Asia Pacific banks.

Tighter operating margins, protracted recovery and changes in revenue dynamics make it essential for lenders to re-examine their debt management systems, says Brian Riley, research director at TowerGroup.

Lenders must consider the full scope of the customer relationship plus the latest developments in adaptive control, analytics and service oriented architecture as they align their collection platforms to this decade's business requirements.

 

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