Pega Collections

Pega Collections:
https://docs.pega.com/bundle/customer-decision-hub-23/page/customer-decision-hub/
collections/collections-overview.html
https://docs.pega.com/bundle/customer-decision-hub-23/page/customer-decision-hub/
collections/engage-customers-collections.html
 Streamline your collections operations with the three Pega Collection products:
 Pega Collections for Financial Services,
 Pega Collections Horizontal
 Next-Best-Action Collections
Understanding of the architecture and integration of Pega Customer Service™ and Pega Customer
Decision Hub™ in Pega Collections
 Explore the high-level decisions that are critical when implementing Pega Collections in
organizations that are involved in debt collection, how to navigate the Pega Customer
Service application in the context of collections case management, and how to use the Next-
Best-Action Designer to create intelligent contact strategies.
Collections refers to money that customers to pay money to a business.
Example : when a minimum payment for a credit card is 30 days past the due date or a utility bill
goes unpaid for two weeks. The goal of collections is to recover all or part of the owed debt by
getting a promise to pay from the delinquent borrowers.
 , 33 percent of Americans hold debt that is currently in collections. This debt amounts to
roughly USD660 billion.
The cost of collections for these companies has fallen by at least 15 percent. For example, one
bank improved its digital communications through advanced email campaigns.
A market leader in real-time decisioning, Pega Collections offers an increased performance of your
collections operations by deploying a fully automated, intelligent omnichannel customer contact
strategy. Pega Collections drives business intelligence and AI into every customer interaction,
regardless of the channel by collecting and analyzing data from all over the client's company
ega Collections supports the following use cases:
 Defining collections case workflows.
 Creating a collections case.

 Creating a composite of a collections customer.
 Setting up a promise (including capturing payment details).
 Payment processing.
 Monitoring promises and payment plans.
 Managing user worklists.
 Handling process exceptions.
 Standard out-of-the-box reporting.
 Managing hardship processes.
 Managing exit rules and case resolution.
Next Best Action Collections supports the following use cases:
 Defining journeys, actions, and payment options (1:1 Operations Manager).
 Assessing customer state (predictive and adaptive analytics).
 Determining whether a collections strategy is appropriate (engagement policies).
 Selecting collections strategy and actions (arbitration).
 Recommending individual payment plans (Next Best Payment).
 Automating outbound messages (periodic outbound).
 Managing the Broken Promise strategy (engagement policies).
 Managing the Special Exceptions strategy (engagement policies).
 Managing the Partial Payment strategy (engagement policies).
 Adapting approach based on context (re-decisioning).
 Optimizing communication cadence (contact policies).

For example, the extract might include all the accounts from one day and one cent past due, but a
business might want to process cases only once the cases age to five days and USD5 past due.
Creating a set of entry criteria, equips the business with an additional level of control.
The Pega Collections implementation team initially defines a set of entry criteria to determine
which cases from the file extract are imported into the application as collections cases.
VIP: This special group of customers requires specific and potentially more personalized treatment.
First Installment Default
The First Installment Default (FID) group includes customers who have missed their first payment
on a credit contract.
If the reason code indicates insufficient funds or a closed account, this can indicate a high risk and
require actions such as suspension of the credit function and initiating high-risk customer contact
strategies.
Repeat Offender
If a customer has had multiple instances of arrears within a specified time frame, then they can be
categorized as a repeat offender
Arrears
Having defined the criteria to create the group for Arrears cases, it is common for the business to
then create additional grouping logic for cases of similar risk
Collections contact strategies
Contact strategies (sometimes referred to as dunning strategies) allow you to define how to
contact the customer in collections, through the best channel at the best time, with the most
appropriate message
In traditional or legacy contact strategy design, you often see cases or customers grouped or
segmented by risk.
 In traditional contact strategy, these high-risk customers will usually be receiving

accelerated actions. For example, they may receive first notice that they have missed their
payment within a few days of the due date. This contrasts with the low-risk segment,
where the first communication may come after some prolonged time period, such as 10 to
15 days after the due date. This is because low-risk customers have a high probability of
self-cure (repaying the debt unprompted), making early contact redundant. In fact,
contacting this group of customers too early might create a negative impact, as they may
see this as bad customer experience and close their account.
 When designing contact strategies, it can still be useful to group cases into risk categories
as a starting point to designing a dynamic and AI-driven contact strategy plan. For instance,
if the risk profile of customers follows a bell curve, with the highest volume falling into the
'medium' risk category, it is good practice to start designing contact strategies with
medium-risk customers as the primary audience. This will answer the question: How do I
want to reach out to the majority of my customers? "High-risk" and "low-risk" actions can
also be included within the list of all actions, and Customer Decision Hub can then validate
the best application for such actions. This allows Customer Decision Hub to validate the
application of actions against risk predictors to test any preconceived and potentially
biased approach about how all customers, not just high-risk and low-risk, respond to
specific types of actions.
Exception management
 Bankruptcy
 Health matter
 Natural disaster
 Deceased
 Military service
 The Schedule payment plan

service request
ne of the key differentiators of Pega Collections™ is its ability to use decisioning and analytics to
suggest the best payment plans for the customer. When scheduling a payment plan with the Agent
Desktop, CSRs can access policy-driven payment plans, add additional features such as fee waivers,
and present alternatives such as settlement plans.
For example, a business has a policy stating that if a customer has broken more
than x number of promises in y months, the customer is not entitled to any
additional payment plans. With Pega Collections you can configure Schedule
payment plan to reflect the policy. In this case, the only option that is available to
the customer is a Pay Now offer.
Offer policies
Custom
Promise control parameters

 Real-Time Containers (Inbound): You can map business issues and groups in Customer
Decision Hub to real-time containers, which serve as an API interface between an external
system and Customer Decision Hub.
 Events (Outbound): Customer Decision Hub can use the Event
Strategy Manager to trigger a next-best-action run and, if needed,
deliver the results to an external system. A strategy can create
various file types and deliver those files to SFTP or cloud-based
systems for pickup and processing. Customer Decision Hub can also
integrate with other event-based technologies that the customer
may already have in place and listen to real-time streaming data
sources to trigger next-best-action runs.

 Scheduling (Outbound): Similar to events, you can set a next-
best-action run on a schedule and dictate where to route the results.
For example, if a client has an existing email marketing service but
uses Customer Decision Hub to determine which customers to
engage with and the treatment details, a daily schedule can run a
strategy that can identify the target customers and treatments and
drop off a CSV file for the email marketing service to pick up and
process.
Arbitration
Use the Arbitration tab of the Next-Best-Action Designer to configure

how customer actions and reminders are prioritized. On the
tab, Propensity represents the action's likelihood of getting a positive
response from the customer. Use this AI-calculated value to choose the
right channel, action, and treatment to always deliver the most optimal
message to the customer. You then use Context weighting to assign a
value to real-time contextual data.
Business Value enables you to assign a financial value to an action and

prioritize high-value actions over low-value ones. For example, promoting
an unlimited data plan might be more profitable for the company than a
limited data plan. Action values are typically normalized across Issues and
Groups.
The following figure shows the arbitration tab of the Next-Best-Action

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Pega Collections:

Collections refers to money that customers to pay money to a business.

ega Collections supports the following use cases:

 Defining collections case workflows.

 Creating a collections case.

 Setting up a promise (including capturing payment details).

 Monitoring promises and payment plans.

 Managing user worklists.

 Handling process exceptions.

 Standard out-of-the-box reporting.

 Managing hardship processes.

 Managing exit rules and case resolution.

Next Best Action Collections supports the following use cases:

 Defining journeys, actions, and payment options (1:1 Operations Manager).

 Assessing customer state (predictive and adaptive analytics).

 Determining whether a collections strategy is appropriate (engagement policies).

 Selecting collections strategy and actions (arbitration).

 Recommending individual payment plans (Next Best Payment).

 Automating outbound messages (periodic outbound).

 Managing the Broken Promise strategy (engagement policies).

 Managing the Special Exceptions strategy (engagement policies).

 Managing the Partial Payment strategy (engagement policies).

 Adapting approach based on context (re-decisioning).

 Optimizing communication cadence (contact policies).

First Installment Default

 In traditional contact strategy, these high-risk customers will usually be receiving

 The Schedule payment plan

Promise control parameters

Use the Arbitration tab of the Next-Best-Action Designer to configure

Business Value enables you to assign a financial value to an action and

The following figure shows the arbitration tab of the Next-Best-Action

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