Goldman Sachs

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

Goldman Sachs wanted to strengthen its debt recovery process, as well as ensure timely compliance to regulations.
The loan recovery department’s existing process for debt collection was overall largely based on workflow that involved the use of legacy systems and antiquated technologies. This process was not viable to manage rapid credit growth registered by the company in recent years, given its aggressive retail asset acquisition strategy. The company also wanted to ensure smooth credit recovery in remotes areas. Considering these goals, the firm partnered with Akvarr to implement an automated platform for effective debt collection.

Goldman Sachs loan recovery team used mainly 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 renders on desktop, mobile devices and laptops.  A central repository was leveraged within the platform for every day 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 process, allowing debt collectors to focus on their core role. Akvarr’s solution helped the company ensure compliance to ‘treating customers fairly (TCF)’ norms.

Akvarr helped the loan recovery department improve its overall 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, which facilitated quick reconciliations, helped reduce customer grievances. This lowered the company’s cost of debt collection, and improved the overall customer experience. With 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 has realized a 17% increase in the average volume of loans recovered per month. which has resulted in a 13% rise in average monthly loan recoveries. The firm has benefited from reduced credit losses, enhanced risk management, and improved regulatory compliance.