Virtual Collections

“The Evolution of Now”

2010 ACA International 71st Annual Convention & Exposition

July 11-14 2010Washington DC

Tom Gillespie – PresidentACCESS Receivables Management

Communication habits are changing

Contact Success Rates

UK in the early 90’s

Web

Cell

Text

Evolution of “NOW”Photocopiers, (Xerox this!) (3M , 1981 Case Study),Overnight Delivery, (Federal Express Founded 1971),Answering Machines, 1983 - Virtually 100% with cell phones today,Card-less Collection Systems, (Corliss, Allied Bond)Car Phones, 1984Auto-Dialers, ANI (Caller ID), 1989 virtually 100% saturation with cell phones today.Beepers, Sky-Tel (First Satellite Text Messaging), Predictive Dialer, Checks by Phone, World Wide Web, Cell Phones, Instant Messenger, Intelligent Voice Recorder (IVR), Personal Communication Device (PCD), Palm, Blackberry, I-Phone, etc.Instant Text MessagingVirtual Collections - 2008Every one of these innovations was

driven by faster response times.

The Evolution of “NOW”Average consumer spends 60 hours on the Web per week. (3X more than television),Average U.S. consumer sent 300 text messages per month in 2009 at .10 per text. Flat rates in 2010 are pushing the number to >2500 per month.Today’s consumer purchases 20% of all goods online, YouTube gets 1 Billion hits per day and is only 5 years old. Internet usage in North America exceeds *75%,

Europe – 52%Australia – 60%

(*Not including cell phone access),

89% of all Americans have a cell phone,60% of the world population have a cell phone.

Source: Neilson, Pew Internet and American Life

Study2007, Project America 2010, FCC 2010)Disclaimer: Social Commentary Excluded

We have “a need for speed”!

The Evolution of “NOW”

Social Networking – Over 500 million people have a Facebook account. 50 % log on at least 1x per day, More than 20 million people join Facebook each day.More than 5 Billion pieces of information are shared and uploaded weekly. The amount of time spent on social networking sites has increased 300% in one year alone. Why was 3/17/2010 a pivotal day in social networking? (Hint: not St. Patrick’s Day)1 ½ Trillion Tweets in 2008. Source: Neilson, Pew Internet

and American Life Study2007, Project America

2010, FCC 2010)Disclaimer: Social Commentary Excluded

Payment Habits have Changed

Physical Check usage will decrease to 25% in 2010. 75% of all payments will be electronic this year. Only 26% of all consumers did not pay at least one bill online in 2008.More payments are made at individual sites versus bank on-line bill payment.E-Payment and E-invoicing is green technology.E-payment and E-invoicing (Bill Presentment) is significantly cheaper, therefore merchants and banks will continue to push for it.

Source: Aite Group 2007; Pay Stream Advisors 2008

VIRTUAL COLLECTIONS

What if you could find an employee that never takes a break, never call in sick, always says the right thing and works 24/7/365 .

ACCESS Receivables created a debtor payment website in 1999.

From 1999 to 2007, the company only received 1-3% of total payments at our website.Only 40% of U.S. households had a PC in the home in 1999.Only 50% of Businesses had a PC on the Desk topY2K changed the game and fueled a rapid expansion of technology.

In 2007, ACCESS and a quality software vendor (Interprose) worked together to develop a true AVATAR based collector that would actually take a debtor through a talk-off. It deployed in October of that year (patent pending). It was build on top of a collection platform (WebAR).This gave it much more flexibility than a simple website with prompts.We can present custom offers to debtors based on information such as credit scores, demographics, employment, etc. The application has a built in payment engine that processes credit cards and ACH payments.Emails and/or snail mail can be sent to the debtor automatically to confirm payment.

A case study in Virtual CollectionsA two step approach

Step 1 – Build it.

Model it after your best collector

Why are you not paying the balance? Payment plans?Gather disputes?Gather proposals?Settlements?Can be customized by client if desired,Bi-lingual

Would you like to pay the BIF?

yes no

Pay PlansSettlementsDisputes

Payment EngineACH Credit Card

You build a decision tree and lead the debtor down the path to self-resolution.

A Virtual Collector Benefits to your customer

The power of “NOW”.

Responds promptly – never a wait, multiple concurrent sessions,Takes customer payments quickly and efficiently,Can perform the same function as your live agents,Use to collect new information, updates phone numbers, employment, address changes etc. Integrates with online databases such as credit bureaus and DMV’s,Speaks multiple languages,Solves customer service issues online,Agent intelligence can include dispute, handling, payment plans and questions and more,Integrate with online chat for special situations.

Virtual Collectorinterface and Administration

We update our collection system each day with comments, transactions, visits, etc. The Virtual Collector takes ACH and credit card payment plans which is translated into our collection system,Nighttime process to refresh data. Payments processed and settled daily with our bank. Daily settlement and management reportsAutomated uploads to our systems Improves call statistics in our call center by providing debtors with self resolution.No need to speak with a live agent.

Columbia UltimateCollector System

ACCESS ResultsOnline payments have increased from 1-2% of total payments received to 10-14% of payments receivedLowered FTE’s by 10% while maintaining recoveries and fees.33.23% FIRST TIME PAYORS55.27% RECURRING PAYORS31.42% PIF7.62% PAYMENT SERIES28.71% PROFILE UPDATES11.50% DISPUTES ACCESS has collected commercial and consumer accounts in excess of $50,000 through the portal.The portal offers us significant advantage at month end when a customer needs to make a payment before month-end. The portal offers safe alternatives to speaking with someone on a cell phone while they are driving.The portal demonstrates our commitment to work “with” people who sincerely want to pay their bills but are having a problem – positive approachThe portal continues to grow in acceptance and success as our debtors become more familiar with it. One specific application for resolving your bill.

School Case Study ExamplesClient Type

Date Placed

Last Pay Date

Original Balance

Pmt. Made Via Web

Comments

School 1/18/10 1/27/10 2,587.50 2,587.50 1 phone attempt – 1 letter PIF rec’d 4 days after phone attempt.

School 1/18/10 1/27/10 2,833.25 2,833.25 2 phone attempts – 1 letterPIF rec’d 9 days later

School 11/3/08 3/2/10 385.00 146.17 Many phone attempts -3 lettersDebtor set up web pay after final attempt.

School 9/03/04 3/2/10 2,802.31 739.31 Credit Counseling was sending small payments for several years. Payments stopped 8/09. DTR PIF balance after 2 IVR calls in February.

School 8/24/05 1/13/09 568.39 543.99 Debtor directed to Web by Collector

School 6/30/08 3/15/10 2,261.00 1409.74 REFUND! First Payment received after many phone attempts and 3 letters sent. 1st payment received after 1 conversation with debtor in 2/10.

School 12/23/08 6/10/09 2,652.62 2,652.62 Letter series exhausted – many phone attempts – DTR called in and left message she would pay via WEB. Rec’d PIF within 30 days of message.

Commercial Case Study ExamplesClient Type

Date Placed

Last Pay Date

Original Balance

Pmt. Made Via Web

Comments

Insurance 4/3/08 1/19/09 1,623,43 1,623.43 Numerous phone calls and letters – no response from owner including legal letter (commercial) sent. Payment plan set up via Web in July and PIF by 1/19/09

Publishing

9/24/08 1/19/09 215.00 215.00 Many phone attempts (LM)Letter series exhaustedDTR – PIF after receiving SIF LTR?

Telecom 12/16/09 02/05/10 494.35 494.35 Several refusals to pay (disputed charges) Letter series exhausted. PIF after last letter released

Telecom 10/12/09 11/27/09 441.26 441.26 Collector directed debtor to Website due to inconvenient call. PIF 2 days later on website.

Insurance 5/11/09 9/11/09 1,136.00 1,136,00 Debtor voluntarily went to site and entered a payment arrangement which PIF’d in 5 months.

Telecom 12/16/09 1/15/10 342.14 342.14 2 collection letters sent. One message left by Collector – Debtor PIF within 30 days.

When someone visits your website, it’s a special occasion…

Evolution of WebsitesMost companies developed websites reluctantly in the 90’s. Cluttered – Your site should not be “one site fits all”. Distracting colors, flash objects, animations, etc.Your Website should not be an online brochure.Your debtors should not be directed to your corporate site to pay their bill.Websites today are developed for specific applications to focus attention one “one thing”. (television versus print). Get the visual senses involved.Is your Website trying to accomplish too much or not enough?

The Internet could be the primary vehicle for communication

in the future

Focus their Attention – Increase your StickinessMake your Website Functional versus informational

Make it AttractiveMake it CleanMake it FastKeep it FreshModern Websites

should be highly targeted applications – not encyclopedias or billboards.

Corporate Site

Client Site

Virtual Collector

Is your Website Sticky?

ACCESS Promotes its 2mybill.com virtual agent in every communication with the debtor.

1. We put a friendly statement on all notices that notifies our customer (debtor) of the ability to self-resolve online.

2. All outbound messages left include a statement about resolving their account online at 2mybill.com.

3. Inbound on-hold messages also inform the debtor of their ability to resolve their account on-line,

4. Statement Stuffers

Step 1 – Build it

Step 2 - Promote it

Statement Stuffer

Statement Stuffers are doubled sided- English/Spanish and are distributed with every letter.

Some of the benefits of Virtual Collections

1. Enhances traditional collection efforts (recoveries),

2. Lowest cost solution versus human effort (cost),3. Automated payments versus manual (processing) 4. Impulse Payments (marketing)5. Positive Approach (public relations)6. Delivers a consistent message (compliance)7. Ease of Use for your debtor (customer service).

Why use an AVATAR when you can simply have a text based solution?

Are you ready?

tgillespie@access-receivables.com www.access-receivables.com

For More InformationContact

Tom GillespieACCESS Receivables Management

200 East Joppa Road Suite 310Towson, MD 21286

For information on your own

Virtual Collectorwww.ammina.com www.interprose.co

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