Risk Segmentation Is Key

The final action to ‘approve’ or ‘reject’ that electronic DebiCheck request lies with the customer. Credit providers will soon be faced with the decision as to how, in particular, the inability to obtain an approved DebiCheck impacts their risk. Essentially then what is that optimised sweet spot in your risk segmentation strategy that will influence that decision and how are you then going to actively use and enhance your propensity to pay or to roll models in collections to prioritise calls, determine treatments, and maintain your collection yield targets?

credit providers impacts
credit providers impacts

Make Sure Your Strike Dates Are Accurate

It is not uncommon to observe debit order dates being misaligned to actual salary deposit dates by up to 60%. This can be put down to a few reasons. Quite often the financial compliance documentation is only obtained at the end of the acquisition process and not used efficiently. Or giving customers too much freedom to choose their ideal date of deduction, causing an ever-widening gap in your pay-date alignment. Credit providers need to consider a strategy that reduces this variance percentage as the failure to do so will have a compounding impact on collection yields going forward if you are not in a position to make use of tracking. This is where we can assist with our Strike Date Optimization product, read more here: Strike Date Optimisation

Raise Awareness With Your Customer


DebiCheck is here to protect your customer from debit order abuse. Make sure your customers are informed of this as much as possible by having a marketing strategy that leverages off all of your customer touch points. When it then comes to prioritising those customers from who you require a DebiCheck from, a contact strategy that makes use of propensity to pay or to roll, Right-Party-Connect (RPC) and Right-Time-To-Call (RTTC) models, will enhance the probability of obtaining a DebiCheck and limit the impact to collection yields.
credit providers impacts

The rollout of this new system started mid-2017 with all the major participating banks going live, and throughout 2018 businesses will be ramped up incrementally, right through to early 2019. From 1 November 2019, nobody at all will be allowed to process a debit order in the early window without the customer’s authorisation.

The collection game is about to change and we are ready to assist you so that your business is DebiCheck ready.

Should you require any guidance or support in the development and execution of your collections strategy, please feel free to drop us a line to discuss your requirements and answer any questions you may have. We offer various solutions to help you on your way to DebiCheck.

For additional information, visit our DebiCheck Page.