Proven benefits from automated communication

Reduction in closing balances

Improvement in roll rate from Cycle 1 to 2

Inbound calls managed without agent intervention

45%

69%

18%

© 2015 Fair Isaac Corporation. All rights reserved. 1

When it comes to communications, consumer preferences are changing – and so are the options available to first-party organizations collecting debt. When consent is in place, the auto- or direct-dialed telephone calls collection groups have relied on for decades have been joined by a powerful new technology: interactive virtual agents. This software serves as an online customer service representative, engaging consumers in interactive, automated, multi- channel communications in a self-service environment.

Interactive online virtual agents first appeared over a decade ago. More recently, it’s been optimized for mobile communications. For first parties collecting debt, the potential is clear: fully 41% of American homes are now wireless-only,1 making automated mobile devices the focal point for voice, text, email and mobile apps.

When consent is in place, interactive virtual agents put automated technology on the front lines of the debt lifecycle, from pre-delinquency through debt resolution. It addresses two of the biggest challenges facing banks and first parties: improving the quality and quantity of customer communication while maintaining compliance with increasingly complex regulations.

The Benefits of Automated TechnologyInteractive virtual agents supplement the live-agent/collector workforce, automating customer communication via voice (still the most commonly used channel), letters, email, text and mobile apps

EXECUTIVE BRIEF

1 As of the end of 2013. 66% of people 25–29 use cellphones exclusively. Source: National Center for Health Statistics.

EXECUTIVE BRIEFInteractive Virtual Agents Boost First-Party Collection Success

© 2015 Fair Isaac Corporation. All rights reserved. 2

This automation is central to significant advantages in debt collection, including:

• Lower costs

• Increased right-party contact

• Higher payments made faster

• Improved roll rates for early-stage delinquencies

• Better customer experience

• Greater compliance through automated scripts

Automated technology is applicable for products including credit cards, deposit accounts, loans, retail credit and more. Interactive virtual agents are ideal for communicating about a multitude of issues, with consumers who are:

• In arrears

• Over their credit limit

• Resolving broken promises

• Needing payment reminders

• With failed direct-debit payment transactions

• Have cancelled cards

• Have small balances

• Have paid less than the amount due

Consumers ApproveAutomated technology empowers consumers and eliminates the embarrassment most feel when speaking with a live agent or debt collector. Multi-channel communication lets consumers choose the medium they like best, increases right-party contact and boosts payment amounts, since little to no negotiation takes place when a live agent isn’t involved.

Institutions that use interactive virtual agents achieve demonstrably greater customer satisfaction. When given the choice, 55% of consumers select interactive voice messaging as their preferred contact channel, resulting in:

• An 84% satisfaction rate from high-risk consumers

• A 79% satisfaction rate overall

Why Interactive Virtual Agents Are EffectiveInteractive virtual agent technology drives fundamental improvements in efficiency and compliance:

• Recorded messaging means communications are consistent and compliant. Peak outreach activity close to traditional paydays or cycle closings can be managed without a surge in full-time employees (FTEs).

• Engagements can be recorded and audited, for internal training purposes as well as external audits.

These advantages translate into significant cost savings; as interactive virtual agent use grows, the need for additional costly FTEs decreases.

Compliance AssuranceThe compliance environment is continually evolving with regulatory updates and new requirements.

When consent is in place, interactive, automated communication technology allows collector/customer

communications to be audited and ready for review in real time.

Using analytics and reporting tools, high quality scripts empirically improve over time, delivering continual collector improvement. This further improves collection operations, reducing FTE supervision requirements without costly off-shoring.

BMW Collections Success

BMW uses FICO® Customer Communication Services to: • Sell more than 200 cars in 12 months, directly

attributable to call efforts• Increase contact rates to between 20% – 40%• Reduce costs per right-party contact by up to 12% • Reduced abandonment rates by up to 55% • Increase customer and employee satisfaction

Download the BMW case study: www.fico.com/en/latest-thinking/white-papers/bmw-speeds-customer-communications

Interactive virtual agent technology communicates with customers quickly and efficiently in a personalized manner.

FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2015 Fair Isaac Corporation. All rights reserved. 4119EX_EN 05/15 PDF

NORTH AMERICA +1 888 342 6336 info@fico.com

FOR MORE INFORMATION www.fico.com www.fico.com/en/blogs

LATIN AMERICA & CARIBBEAN +55 11 5189 8267 LAC_info@fico.com

EUROPE, MIDDLE EAST & AFRICA +44 (0) 207 940 8718 emeainfo@fico.com

ASIA PACIFIC +65 6422 7700 infoasia@fico.com

EXECUTIVE BRIEFInteractive Virtual Agents Boost First-Party Collection Success

The FICO SolutionInteractive virtual agent technology can be easily implemented with cloud-based FICO® Customer Communication Services for collections. This highly modular solution is easily embedded in Android and iPhone smartphone apps.

Customer Communication Services for collections works alongside existing systems and processes and can be quickly deployed with minimal capital investment and little IT support. All functionality is accessed through a secure online portal, using rules-based management to develop targeted communications strategies.

Learn how FICO® Customer Communication Services for collections can help you automate and improve the collections process.

Visit us on the web at:

www.fico.com/en/debt-management/collection-communications

Email: The new way to connect

No landline? No problem. 65% of all email gets opened first on a mobile device,2 making it easier for collections organizations to reach consumers through this high-touch channel.2 “65% of all email gets opened first on a mobile device — and that’s great news for marketers,” J. O’Dell, VentureBeat, January 22, 2014.