Those familiar with call-center collections are probably accustomed with the concept of Delinquency Buckets. When an account ends the month between 1 to 29 days past due, they are said to be in Bucket 1, 30 to 59 days past due = Bucket 2, and so on. It’s also common to measure roll rates from one month to the next. For example, perhaps its normal for roughly 30% of the accounts in Bucket 1 to roll into Bucket 2 one month later. These statistics of movement are interesting to plot and monitor each month. But that’s the extent of analytics in most LMS software solutions. But with Lendisoft, we’re just getting started! Lendisoft employs independent scoring models to predict the likelihood (odds) an account will either “roll” to a deeper bucket, or “cure” to a lesser bucket. To accomplish this, we deploy 2 independent models for each bucket, one designed to predict odds of cure, and one to predict odds of roll—and we average the two predictions into a single, final prediction. The end result is displayed in our Odds of Roll Chart for fast and easy interpretation. This chart can be hidden, or shown to specific users at your discretion, so you may want to hide it from most front-line agents, but show it to managers to aid them when it comes to important decisions like, “should we repossess now, or wait a little longer?”.
In this example, the yellow needle indicates a strong likelihood (roughly 70%) the account will roll to a deeper Delinquency Bucket at the end of this month (and thus, this is a difficult borrower to collect payments from). Want to learn more? Contact us today for a demo!