A key area where JBW currently leads the industry relates to our advanced work in propensity modelling.
JBW’s propensity approach, developed through our strategic relationship with the UK PhD Centre in Business Computing at University College London (UCL), provides the most accurate assessments of debt portfolios available in the industry.
The model analyses over 20 behavioural and demographic criteria and how these factors influence the collectability of the case. Example indicators for one of our Traffic Management models include:
debtors with mortgages are 14.1% more likely to pay
debtors living in flats are 8.8% less likely to pay
debtors recorded on the Electoral Register are 5.1% more likely to pay
The model's robustness provides a sound basis for a range of initiatives for maximising collections, improving service levels and reducing costs. Benefits we can deliver for clients include:
Reducing TEC costs: The model's accuracy ensures we can provide a meaningful pre-TEC vetting service. Scoring identifies cases unlikely to provide a return on the £7 TEC fee with detailed reasons. This allows an informed decision as to whether to continue with registration, with cost savings between 20% and 30%, depending on demographics and historical collection rates.
Alternate recovery methods: Where traditional enforcement may be less effective, eg for debtors with reasonable income but no assets of value, we collect relevant employment or benefit details. This information, supplemented by information from our propensity processes, helps clients assess a debtor's ability to pay by alternate methods.
Collection of aged debt and expired warrants: Our propensity process assists clients to identify non-performing liability orders and to cleanse, review and progress these to the correct stage and recommence recovery. Information provided, such as new addresses, improves data quality on clients' own databases. For expired parking warrants, our propensity process can evaluate options for further recovery action. With new address information and an assessment of the likelihood of payment, clients can make an informed decision about recommencing recovery action by reissuing the Notice to Owner.
Putting propensity into practice
Having the most accurate propensity model in the industry is one thing. Integrating it into our technology and business processes to optimise our collection strategy is another.
Our propensity scoring methodology is built into the core of our AR-12 case management solution. Using data links with industry leading data providers such as Callcredit, AR-12 analyses each debtor's individual circumstances and tailors the optimal collection process for that debtor. The bespoke process will involve strategies such as selecting the most appropriate letters, preparing an intelligent call campaign, and scheduling visits for times most likely to make contact with the debtor.
No other technology available in the industry provides this integration of an academically proven, evidence based model into core processes.