Management of distressed receivables for banks and nonfinancial organizations (i.e. utility companies such as energy suppliers) does not normally belong to a firm’s core business. In countries such as Italy, where timing and complexity tend to make legal proceedings very inefficient, the credit collection activity becomes very expensive and time consuming. This paper analyzes the relevant role within the broader credit ecosystem. An outlook over the Italian industry reveals a growth in assets under management and good profitability in recent years. The evolution of business models within debt collection agencies, highlighting the best practices adopted in collection processes, communication strategies and the professional and ethical management of customer service. This demonstrates how an excellent debt collection service is increasingly appreciated by creditors who, thanks to the assignment of the service, can improve their cash flows and their financial stability, and at the same time, concentrate on their main operations. The Debt Recovery Service Market is ripe with opportunities as it adapts to technological innovations and evolving regulations. The integration of data analytics and artificial intelligence for predictive modeling and risk assessment heralds a transformative potential for increasing the efficiency of debt recovery operations

Business Models and Best Practices in Debt Recovery Services: an overview of the Italian industry

malinconico antonella
;
virguti eugenio
2024-01-01

Abstract

Management of distressed receivables for banks and nonfinancial organizations (i.e. utility companies such as energy suppliers) does not normally belong to a firm’s core business. In countries such as Italy, where timing and complexity tend to make legal proceedings very inefficient, the credit collection activity becomes very expensive and time consuming. This paper analyzes the relevant role within the broader credit ecosystem. An outlook over the Italian industry reveals a growth in assets under management and good profitability in recent years. The evolution of business models within debt collection agencies, highlighting the best practices adopted in collection processes, communication strategies and the professional and ethical management of customer service. This demonstrates how an excellent debt collection service is increasingly appreciated by creditors who, thanks to the assignment of the service, can improve their cash flows and their financial stability, and at the same time, concentrate on their main operations. The Debt Recovery Service Market is ripe with opportunities as it adapts to technological innovations and evolving regulations. The integration of data analytics and artificial intelligence for predictive modeling and risk assessment heralds a transformative potential for increasing the efficiency of debt recovery operations
2024
9791041552207
Distressed receivables, Non Performing Exposures, Credit Management, Debt Collection Agencies, Servicers, Securitizations
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.12070/68585
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