Managing Defaults and NPLs in Digital Lending Training Course

Introduction

This intensive 5-day training course provides a comprehensive and practical exploration of managing defaults and Non-Performing Loans (NPLs) specifically within the context of digital lending. While digital credit offers unprecedented speed and accessibility, it also introduces unique challenges in collections, requiring innovative strategies to mitigate losses and maintain portfolio health. This program will equip participants with cutting-edge methodologies, data-driven approaches, and technological tools to proactively identify at-risk borrowers, optimize collection efforts, and effectively recover outstanding balances, ensuring the long-term sustainability and profitability of digital lending operations.

The course goes beyond traditional collections practices, focusing on behavioral analytics, automated communication strategies, and the ethical considerations inherent in digital recovery. Through interactive case studies, hands-on exercises with collections data, and discussions of regulatory compliance, attendees will learn to segment delinquent portfolios, implement predictive models for recovery rates, leverage digital channels for effective communication, and navigate legal frameworks for debt recovery. Whether you are a collections manager, credit risk analyst, data scientist, operations specialist, or a digital lending executive, this program offers an unparalleled opportunity to master the essential aspects of managing defaults and NPLs in the digital age, safeguarding your institution's financial integrity and maximizing recovery rates.

Duration: 5 days

Target Audience:

  • Collections and Recovery Managers
  • Credit Risk Analysts and Managers
  • Digital Lending Operations Managers
  • Data Scientists and Business Analysts in Lending
  • Legal and Compliance Professionals in Finance
  • Fintech Founders and Risk Specialists
  • Portfolio Performance Managers
  • Customer Service Managers in Digital Lending

Objectives:

  • To provide a comprehensive understanding of default and NPL dynamics in digital lending portfolios.
  • To equip participants with advanced analytical techniques for predicting and identifying at-risk borrowers.
  • To understand how to design and implement effective digital collections strategies.
  • To develop proficiency in leveraging technology (AI, automation) for optimized recovery processes.
  • To explore the regulatory, ethical, and legal considerations in managing digital loan defaults and NPLs.

Course Modules:

Introduction

  • Defining loan default, delinquency, and Non-Performing Loans (NPLs) in a digital lending context.
  • Unique challenges of collections in digital lending (e.g., high volume, remote customers, often smaller loan sizes).
  • The critical impact of NPLs on profitability and portfolio health.
  • Overview of modern approaches to collections: data-driven and customer-centric.
  • Course objectives and an outline of the modules.

Understanding Default Behavior in Digital Lending

  • Analyzing repayment patterns and behavioral characteristics of digital borrowers.
  • Identifying early warning indicators of potential default (e.g., changes in spending, late payments on other bills).
  • Segmentation of delinquent borrowers based on risk profile, behavior, and potential for recovery.
  • The psychology of debt and behavioral nudges for encouraging repayment.
  • Case studies on digital borrower default patterns.

Data Analytics for Collections and Recovery

  • Key data sources for collections: loan servicing data, communication history, external data (where permitted).
  • Building predictive models for delinquency and default likelihood.
  • Forecasting recovery rates for different segments and strategies.
  • Machine Learning (ML) for optimizing collections strategies.
  • Performance metrics for collections (e.g., cure rates, recovery rates, cost to collect).

Digital Collections Strategies and Channels

  • Multi-channel communication strategies: SMS, email, in-app notifications, chatbots, automated calls.
  • Personalizing communication based on borrower segment and behavior.
  • Self-service portals for payment arrangements and dispute resolution.
  • Designing effective payment reminders and late payment notices.
  • Escalation strategies in a digital-first environment.

Collections Automation and Technology

  • Robotic Process Automation (RPA) for automating routine collections tasks.
  • AI-powered chatbots and virtual assistants for initial customer engagement.
  • Advanced dialer systems and intelligent routing for human agents.
  • Integration of collections systems with loan management systems (LMS) and payment gateways.
  • Tools for automated payment arrangements and tracking.

Legal and Regulatory Frameworks

  • Consumer protection laws relevant to debt collection (e.g., FDCPA in US, local equivalents).
  • Regulations around communication frequency and methods.
  • Data privacy laws (GDPR, CCPA) and their impact on collections data usage.
  • Understanding debt restructuring, rescheduling, and write-off policies.
  • Legal processes for debt recovery and enforcement in various jurisdictions.

Managing Non-Performing Loans (NPLs)

  • NPL classification and provisioning methodologies for digital portfolios.
  • Strategies for NPL workout and restructuring.
  • Debt sale strategies: preparing NPL portfolios for sale to third-party debt purchasers.
  • Valuation of NPL portfolios and due diligence considerations.
  • Measuring the cost of NPLs and their impact on capital.

Ethical Considerations and Future Trends

  • Responsible collections practices and avoiding predatory tactics.
  • Supporting borrowers in financial distress and promoting financial wellness.
  • The role of behavioral ethics in collections strategy design.
  • Emerging technologies: blockchain for transparent debt tracking, advanced AI for predictive recovery.
  • The future of NPL management in a highly digitized and interconnected lending ecosystem.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Managing Defaults And Npls In Digital Lending Training Course in Romania
Dates Fees Location Action