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Goldman Sachs Improved Debt Collection in the U.S. by 17%

Goldman Sachs is a banking and financial services institution in 32 countries with an $85 billion portfolio. It serves over 60 million customers that include retail and commercial banking, investment banking and wealth management customers. It is listed on the top stock exchanges of the world.

Goldman Sach’s New York branch decided to deploy an automated platform to improve its debt recovery process. The firm partnered with AKVARR to implement an automated collection platform for automatic tracking of debt collection data, which resulted in a 17% rise in average monthly loan recoveries. The firm benefited from reduced credit losses, enhanced risk management and improved regulatory compliance.

Challenge:

Goldman Sachs wanted to strengthen its debt collection process and ensure regulatory compliance. The loan recovery department’s existing process for debt collection was dependent on a legacy system and antiquated technology. This mechanism was not viable to manage the company’s rapid credit growth created by its aggressive retail asset acquisition strategy. The company also wanted to ensure smooth credit recovery in remote areas. Considering these goals, the firm partnered with AKVARR to implement an automated platform for effective debt collection.

Solution:

The Goldman Sachs loan recovery team mainly used legacy system spreadsheets to track interactions with retail-asset customers. AKVARR did a need-gap analysis and implemented an automated collection platform to enable sales personnel to record their communication with borrowers online. The online system easily rendered on desktop, mobile and laptops. A central repository was developed within the platform for everyday transaction and data analysis. The platform enabled the department to track loan repayments accurately, eliminating the need to make recovery calls and preventing data duplication and errors. AKVARR applied its FORE transformation methodology to reengineer the department’s loan recovery mechanism, allowing debt collectors to focus on their core role. AKVARR’s solution helped the company ensure compliance to “treating customers fairly (TCF)” norms.

Result:

AKVARR’s offering helped the department improve its debt collection process. Apart from major cities, the offering enhanced loan recovery in tier-II cities where Goldman Sachs had found it challenging to deploy full-time staff. The automated platform facilitated quick reconciliations and helped reduce customer grievances. This lowered the company’s cost of debt collection and improved overall customer experience. With AKVARR’s risk control measures in place, Goldman Sachs was able to reduce delinquent loans by 11%, which resulted in lower net credit losses. Following the implementation of the automated collection platform, the department realized a 17% increase in the average volume of loans recovered per month.