One of the biggest challenges in the debt management and collection industry is effective assessment of projected returns on debt portfolios. Some of the difficult questions to address include:
- What are the variables that go into the decision to litigate?
- How do you determine the true value of a portfolio with regard to the return you are likely to realize if you move forward with litigation?
This challenge is compounded by the fact that a fair amount of outdated, inaccurate and unverified data is often used to guide multi-million dollar decisions. Using such data creates a variety of potential problems:
- Wasted time pursuing the wrong accounts
- Wasted court costs
- Missed opportunities by focusing on the wrong accounts
In response to the industry’s desire for better information, Recovery Decision Science, powered by more than 30 years of Unifund’s industry leadership, created the Paymetrix suite of proprietary analytics tools. In today’s post, we look at Paymetrix AI, which gives portfolio managers the power to identify previously undiscovered assets.
As we reviewed last week Paymetrix AD analyzes an account to determine its profitability for litigation. A Profitability Index is then assigned to all eligible accounts to determine the most appropriate and cost-effective treatment. Litigation is assigned to accounts with the highest expectation of recovering the upfront costs. However, in that Paymetrix AD is developed according to variable information within the portfolio provided by a client, we must consider two important questions:
- What if the variables change over time?
- What if the information initially provided was inaccurate?
This is where Paymetrix AI comes into the picture. We must control for the inevitable changes in the data to maintain the accuracy of the initial projections and make necessary adjustments to account level treatments.
Paymetrix AI optimizes asset search costs by leveraging decades of experience with data vendors. This invaluable experience prove the axiom: “you get what you pay for.” If a vendor provides cheap information, there is a good chance the data is either inaccurate or out of date. Which, of course, means that we waste time, effort and additional costs pursuing an invalid asset. Paymetrix AI leverages numerous features to find and verify consumer assets, leading to liquidation rates 2-3 times higher than competitors. These features include:
- Sophisticated asset waterfall
- Recursive searching
- Multi-step verification
- Exclusive partnerships and proprietary datbases
THE PAYMETRIX AI DIFFERENCE With the aforementioned model, numerous differentiators aid Paymetrix in helping organizations on a variety of levels:
- Industry-leading asset location: home, bank account, job
- Balance maximum recovery with timing of cash flows
- Finds and delivers data other have been unable to locate
- Guarantees accuracy of data across many data sources
- Transforms data into actionable information
- Leads to meaningful collection results and higher yields
By being able to identify previously undiscovered consumer assets, Paymetrix AI helps organizations make better decisions on what accounts to pursue, and guides increased recovery of otherwise exhaustible receivables.