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AR12 – Automation Solution for Debt Recovery Agencies

The Challenge

JBW Group is one of the UK's leading debt recovery and enforcement agencies. The company was established in 2004; in 2010 its revenue exceeded 5 million GBP. However, further growth was limited by IT infrastructure constraints. The company's IT solution (JBW Group was using one of the industry's most popular products at that time) required a lot of manual input and failed to deliver the required level of transparency.

Specifically, management had virtually no idea as to what was going on "out in the field": where enforcement officers were at any given time, how much of the scope was completed, how much of the work was still pending, what funds were recovered, etc. Another limiting factor was that system development was time-consuming and not always feasible. What's more, all modifications made for JBW Group became immediately available to all competitors.

The company analyzed available automation solutions for debt recovery agencies, only to find that none of them satisfied its requirements. Meanwhile, the company's CEO, Jamie Waller, was impressed with the success of the IT system at Addison Lee – a leading taxi operator in London. Believing that the future solution for JBW Group should be based on a similar design, Jamie Waller approached Haulmont Technology, requesting development of AR12 – a system to take the performance of his company to a new level.

Solution

Haulmont Technology experts joined the JBW Group team for a full analysis of current business processes and came up with specifications for the new system. The development started in July 2010. CUBA platform helped to significantly reduce the project delivery time and budget, while providing a flexible and scalable architecture to adapt the solution to specific customer needs.

The first release of AR12 went live in March 2011, running alongside the old system. This helped to resolve the most challenging issues and significantly minimized deployment risks by keeping the old system available in case the new system crashed or failed to function properly. The second release came out in July 2012, enabling full decommissioning of the old system.

The core concept behind AR12 is maximum automation of all enterprise processes, which results in reduction of exposure to human error. The system automatically makes the necessary decisions, performs actions, or instructs users by setting objectives.

This helps to ensure transparency and manageability of the core processes, minimize the risk of errors, and improves company performance.

AR12 automates primary workflows of a debt recovery agency in the UK, and offers the following core functions:

  • Automated and manual downloads of debt information from customers – government agencies or businesses.
  • Collection of additional debtor information. AR12 is integrated with the databases of the traffic police, tax authorities, databases of telephone numbers, mailing addresses, geographic and demographic data, and sources of information about the debtor's current residence, credit activity, presumed level of income, etc.
  • Scoring. The probability of successful debt recovery is refreshed automatically and kept up-to-date for each debtor throughout the debt lifecycle. Dozens of criteria are used in calculating this probability.
  • Storage of the complete history of interactions with the debtor and data audit (what data was modified, when, and by whom).
  • Automated workplaces of call center operators, enforcement officers managers, the financial, customer care, and client management departments.
  • An Android mobile app for enforcement officers. The app receives a list of tasks for the current day along with all the required information about debtors, and lets the user enter the results of a visit to a debtor. It is automatically synchronized with the server in background mode and can thus be used even with no internet connection
  • Automatic flexible business processes based on predefined events, such as a new debt record upload, a visit to a debtor, or debt repayment. The user can configure processes for various customers and types of debt. Supports automatic transmission of letters, text messages, or emails, employee tasks setting, additional fees charging, recovery process suspension, etc.
  • A module for determining the type, sequence and amount of actions for debt recovery. Depending on the type of debt, scoring data, and results of prior activities, the number and sequence of calls, letters or visits for different types of enforcement officers are configured.
  • A module for enforcement officer schedule planning. The module automatically generates a daily schedule for enforcement officers, taking into account wide set of criteria: minimum itinerary length, debtor visit priority, optimal visit time, enforcement officer's qualification, etc. Over the course of the day, the system can make dynamic adjustments to the schedule, based on the enforcement officer's current location.
  • Automatic calculation of the agency's fees and charges and of amounts to be remitted to customers.
  • A web portal for debtors including card payments support.
  • A web portal for client access.
  • A module for calculating the enforcement officers' commission.
  • A set of predefined reports and a new report generation module.
  • A system for controlling user access rights, based on roles and attributes.
  • A self-diagnostic system that monitors the operability of all system modules and integration processes.
  • Support of cluster operation to deliver scalability and fault tolerance.
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Result

AR12 is currently the most advanced system of its kind in the UK market. Analysis shows that performance of enforcement officers has increased by up to 50%. AR-12 completes more cases with fewer visits, delivering a 22% increase in collections for JBW clients.

AR-12 also offers debtors an opportunity to view information and repay debts on their own. Following the second release, payments via the web portal increased by 60% and by 150% via the IVR (Interactive Voice Response), which significantly reduced the load on the call center.

Last but not least, a complete user activity audit and automatic calculation of charges, as required by law, have reduced the number of debtor complaints against enforcement officers.

The success of AR-12 was recognized at the UK IT Industry Awards 2012 in the category of "Best Project Dependent on Mobile Technology".