Art Sookazian, VP of collections and risk management, $970 million Los Angeles FCU, Glendale, Calif.
The technology is available, but a lot of it is on mobile, so regulations make using some of it problematic. We get more responses to text messages than other forms of communication, but with the [Telephone Consumer Protection Act] there are fines if the members are not opted in. The core of collections is negotiating and strategy, so we are working with our vendors to make our collectors more efficient. With risk-based scoring, we can spot a group of loans that are more likely to default. We also use predictive modeling and credit migration. A 700 credit score sounds like a good score, but if it was 800 a year ago, suddenly it is not so good.
There are workflows on repo requests that can be sent out electronically, which means fewer errors than hand-written requests and we get data back on recovery. If you are leveraging data you can drive production. If workflows track promises, collections and other data points, you can see which collectors are performing better. We can track month to month. This creates incentive-based collections.