Commercial Bank of Africa - CRM

Streamlined collection workflow ensures low levels of non-performing loans

At CBA, there is an average of 600,000 collection tickets raised every month. Thanks to the streamlined workflows in VeriTouch Collection Module on the Dynamics 365 platform, the bank now manages the end-to-end collection process to ensure the collection happens within the early stages of the payment cycle. It also helps to reduce the number of customers forwarded to recovery and write-off process. The bank sends proactive SMS and e-mails to customers to remind them that their loan due date is approaching. If the loan is not repaid on time, the customers receive a second and then a third reminder.

VeriPark's CRM solution brought several other benefits to CBA, including an automated collection strategy based on the product or customer and effective activity and workflow management capability. Centralization of the entire debt collection process, simple access to data on collection tickets, and accurate reports on debt collection were other key benefits that reduced write-offs, provisioning and improved cash-flow.

As a result of VeriPark's CRM implementation and its Collection Management module, the bank has been able to keep the percentage of non-performing loans (NPLs) very low. After an initial spike, NPLs were reduced through improved credit scoring and collection processes. Customers' realization of the consequences of defaulting  -being reported to the Credit Reference Bureau which prevents them from applying for other loans – was also an important factor for the reduction.

Following the implementation, CBA also reduced the cost of collection significantly. The Collection module has eliminated the need for having separate systems and increased the collection team productivity as it is able to ensure the collection happens as per their agreement with the customer. Improvements in productivity and automation allowed the bank to reduce the payback period of the system from 5 years to just 2 years.

Accelerating financial inclusion with the right CRM implementation

However, CBA has even more ambitious plans for its mobile banking products. VeriPark's CRM Sales Management and 360 Degree Single View of the Customer modules help CBA to identify potential customers who can be offered long-standing relationship with the bank. This means that the bank can effectively accelerate financial inclusion and bring more customers to its traditional banking business after giving them a start with its micro-lending product.

This also opens up opportunities for new revenue sources. Thanks to the 360-degree Single View of the Customer, the bank has access to detailed insights into the customer lifecycle, creating cross-sell opportunities to offer relevant products and services to the potential customers while increasing retention. By combining the customer-centric approach with the right CRM implementation, CBA aims to keep its significant role in the growth of micro-lending and the acceleration of financial inclusion in Kenya.