ANZ’s triumph with Experian PowerCurve Collections unleashes efficiency & customer-centric benefits

Solution overview

First global adopter of Experian PowerCurve Collection

ANZ saw several exciting opportunities to rethink their collections process, at a customer level, by being the first global adopter of Experian PowerCurve Collections. ANZ took the time to understand the use and functionality of PowerCurve Collections as an out of the box solution then looked to maximise the value without significant customisation.

Due to the vast amount of information being consumed within ANZ’s Credit Risk Data Hub (CRDH), PowerCurve Collections allowed users to create a fully automated end-to-end strategy that not only meant an increase in transferred volumes, but due to the richness and accuracy of the data, a more transparent and accurate process. There were four significant benefits with this new design:

1. Enables the development of strategies using account, customer, and group level data, allowing for complex configurations that directly inform the decision engine (PowerCurve Customer Management) and allow the strategy to flow seamlessly end-to-end.
2. The process, from source data acquisition to eligibility assessments to file processing and customer notifications, is fully automated without the need for manual intervention or additional resource requirements.
3. The full portfolio is assessed for funds transfer opportunities, enhancing the chance to reduce delinquency on these accounts.
4. Allows for greater opportunities in the future as strategies can be refined and enhanced due to data availability.

Figure 1.0 – Personal Loans – Offset / MPP process

Unlocked benefits

For ANZ, several key benefits have been unlocked using PowerCurve.

For their Personal Loans portfolio, ANZ has seen:

• Accounts less than 30 days – A 102% increase in identifying customers (less than 30 days) that can have a funds transfer of $186 on average across a daily arrears balance of $2.1m (97% increase).
• Accounts greater than 30 days – A 127% increase in identifying accounts with an after daily transfer of $356 on average across a daily arrears balance of $446k (118% increase).

For their Home Loan portfolio, ANZ has seen:

• Accounts less than 30 days – A 356% increase in identifying customers (less than 30 days) that can have a funds transfer of $747 on average across a monthly arrears balance of $282m (251% increase).
• Accounts greater than 30 days – A 7% increase in identified accounts with an after daily transfer of $1,650 on average across a monthly arrears balance of $72m.

This has resulted in a 5% decrease in the 1-29 day arrears bucket for mortgages, 86% of customers remain current 30 days post the transfer.

Not only does this process provide a way to ensure operational activity is minimised, this process also improves associated arrears reporting by identifying more accounts to cure, minimises collection provisions by stopping the role through to higher arrears buckets and reduces capital requirements. Finally, there is also a customer benefit by automating the funds transfer that arguably occurs as part of a collections phone call or customer contact.

“You can get the most value from PowerCurve by simply rethinking some of your current processes and integrating them into the collections ecosystem” – Jason Humphrey, Chief Risk Officer at ANZ