case-study-loan-collection-management-banking-luxoft-for-a-russian-corporate-and-retail-bank

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For more information about Luxoft, visit www.luxoft.com www.luxoft.com/financial-services/

case study 13.09.2012

Loan Collection Management System Summary Develop a loan collection management system to monitor unpaid debt and to automate and streamline the collections process.

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Client: A Russian corporate and retail bank Business Area: Loan collection, overdue payments Asset Classes: Loans Technology Set: Delphi 5, Oracle 9i User Profile: Customer Relations and Retail Credits departments 50+ users) Geography: Russia Relationships Status: T&M Services Provided: Business analysis, Development, QA/Testing, Production support Team Size: 8 team members Duration: 1 year


Business Challenge An increased risk of delinquent debt is a consequence of the growth in Russian corporate lending and retail loans. To mitigate the risk of losses associated with outstanding debt, the bank needed a more focused collection strategy, including the following high-level objectives: uu Prioritization and segmentation of outstanding debt uu Standardize and streamline the collections workflow uu Automated monitoring of the status of unpaid debt

Luxoft Delivered Solution Luxoft developed a modular approach to reduce future IT costs and to increase the flexibility for customization when the business needs change. Luxoft’s solution included three modules: uu Outstanding Debt Management uu Supervising Employee Workflow uu Prioritized Bad Debt Queue The modules work seamlessly together to fulfill the bank’s objectives and to realize quantifiable savings in the reduction of delinquent debt. Each module contains rich functionality to support the bank’s collection strategy. Outstanding Debt Management Module Functional Highlights uu Automated credit agreement tracking for assignment or removal of bad debt status uu Segmentation of debtors with recommended collection approach —— Soft debt collection for initial stage of collection with call center integration —— Hard debt collection for pre-judicial stage of collection —— Legal debt collection for judicial and post-judicial stage of collection uu Automated debtor notification of outstanding debt via SMS text and e‐mail Luxoft - Case Study

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uu Connection with regional offices of the bank uu Outstanding debt analysis and forecasting uu Debtor communication management uu Forwarding the cases to the Archive after closure uu Business intelligence reporting Supervising Employee Workflow Module Functional Highlights uu Automated workflow for debt recovery that tracks the assigned employee’s performance Prioritized Bad Debt Queue Module Functional Highlights uu Prioritized list of bad debt accounts to focus recovery efforts

Benefits The bank realized the following benefits from Luxoft’s loan collection management solution: uu Significant increase in overdue debt recovery uu Reduced administrative costs associated with debt recovery uu Increased profitability with shorter debt delinquency time uu Reduced exposure to fraud risk

Customer Feedback Detailed feedback is available on request.

Luxoft - Case Study

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About luxoft

Luxoft, a principal subsidiary of IBS Group, is a provider of advanced application and software engineering outsourcing services for global and regional enterprises. Luxoft builds partnerships with its clients, such as Boeing, IBM, Deutsche Bank, UBS, Harman, Avaya, Alstom, and Sabre, based on the culture of engineering excellence, innovation, and deep domain expertise. Luxoft offers international delivery capability through its network of state-of-the-art delivery centers in North America, Eastern Europe, and Asia. Luxoft`s customers benefit from the right mix of technology skills, industry knowledge, proprietary processes and methodologies, and a choice of engagement models. For more information about Luxoft, visit www.luxoft.com www.luxoft.com/financial-services/

Š 2012 Luxoft


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