Learn about the artifacts that are provided as part of the Pega Customer Decision Hub for Financial Services CRM Sample Application and about how you can use them in your collections strategy.

This article covers the following topics:

1. Strategy rules
2. Predictive model 
3. Scorecard rules
4. Decision tables
5. Scheduling payment plans
6. Mail, email, and SMS treatments rules
7. Collections offer flows

Strategy rules

You can review a number of strategies and decisioning rules provided in the sample application to select an appropriate interaction type and a follow-up message for a given collections customer.

Analyze existing offers and determine a customer's eligibility based on their repayment risk, customer value, and defined customer and account exceptions by using the provided DetermineContactTreatment strategy. This strategy is generated through the Collections strategy builder.

Import, prioritize, and return the available payment plans by using the DetermineNegotiateOffers strategy.

Identify the possible settlement plans that the customer falls into, such as "Arrears Low Risk" or "Repeat Offender High Risk", by using the SettlementOffer rule.

To determine when fees should be waived for the customer, incorporate a relevant decisioning logic by using the WaiveFeeOffer extension point strategy. However, this extension point strategy is currently not integrated into the Collections application and getting offers from this strategy does not update the waive fee check box in the Collections application.

Predictive model

Use Pega AI to identify a borrower’s propensity for certain behaviors. For example, a predictive model can be used to determine the likelihood of default on a debt. This information can be used to work with borrowers to mitigate financial risk and potentially avoid failure to meet the repayment obligations.

The Collections strategy builder can use predictive models to determine:  

• Repayment risk – the likelihood of customers to repay the amount in arrears.
• Customer lifetime value  –  a prediction of the net profit attributed to the entire future relationship with a customer. 

The sample applications include sample models that demonstrate how predictive models can be used in a real customer implementation. The sample models included are:

• Probability of Default – the likelihood that the customer will not repay any of the outstanding debt
• Repayment Risk – the likelihood that the customer will break a promise to pay

These models take into consideration the influence of different factors on loan repayment including the borrower's age, marital status, a number of dependents, a scope of activities, qualifications, work experience and monthly income. The provided models were created using synthetic data and should never be used in a production system. You must develop, or reuse, predictive models developed using your customer data.  For more information about creating a predictive model in Pega, see Prediction Studio overview.

Your predictive models should be configured to segment borrowers in to different spectrum (classification) of risks. Review the provided models in detail to see how these classifications are configured.

Scorecard rules

Determine customer segmentation based on one or more conditions or methods by using scorecard rules, for example, by implementing the EvaluateContactRisk and WaiveFeeScorecard rules into your collections strategy. The output of a scorecard is a numerical score that helps define the customer's risk profile based on the parameters embedded in the scorecard results.

Calculate the risk score for a customer by using the EvaluatesContactRisk scorecard rule. The risk score is calculated based on the customer's credit score, the number of times the customer has been in collections, and the number of times the customer went over their limit during the last 12 months. You can use the customer's risk score to determine what offer treatments are selected for that customer.

Use the WaiveFeeScorecard scorecard rule to calculate a weighted score based on a variety of factors such as the number of payments, and the number of days before the payment plan starts and ends to determine if associated fees should be waived.

Decision tables

Use the SelectDialer decision table rule to support decisioning on assigning phone interactions between the ManualDialer or AutoDialer work baskets. Extend the rule and modify the logic as needed. The rule is called by the CreateOutboundInteractions activity.

Scheduling payment plans

The DetermineNegotiateOffers strategy evaluates payment plans based on the propositions defined in Pega Customer Decision Hub for Financial Services.

If a Collections customer service representative wants to stop or pause the payment plan, for example, when the customer commits to a Promise to Pay, you can initiate the same ProcessWSRequest service but with a different value of StopOffer for the RequestType service parameter. For more information, see Collections ProcessWSRequest SOAP service.

Pega Customer Decision Hub for Financial Services for Collections offers several different payment plans. You can add additional payment plans by adding new propositions to this decision data rule.

Calculate the start date of the treatment to refine the offer details by using the PaymentDaysToStart decision table and GetDaysToStart data transform.

Mail, email, and SMS treatments rules

Email and SMS treatments are included in offer rules to send emails and SMS to customers at specified touchpoints. Save as and modify the offer flow to alter the number of emails or SMS to be sent out and the logic behind when one gets sent.

You can convert mail treatments rules to PDF by using the GenerateLetterForCustomer activity. This is used in the CreateOutboundInteraction activity.

The following table lists the treatment rules available in Pega Customer Decision Hub for Financial Services for Collections.

Extend treatment rules to modify their content or create your own rules.

Collections offer flows

The application contains 30 collections offer flows that correspond to the contract strategy rules defined in the decision table. Use the offer flows to manage the number of treatments, the timing, and the appropriate contact channel to be provided to the customer during an interaction.

Use these offer flows to reach out to customers through SMS and email. Pega Customer Decision Hub for Financial Services contains a number of email and SMS templates that are provided out of the box. Configure the email and SMS accounts before using them. For more information about configuring email and SMS accounts, see the Pega Customer Decision Hub for Financial Services Implementation Guide on the product page.