With delinquencies an ongoing concern, FICO said it has crafted a way to prioritize the account holders with the highest likelihood of paying.

FICO discussed the process in its latest white paper, delving into the topic by discussing five questions managers often consider, such as:

• What do analytics tell you about your delinquent accountholders?

• What are collection scores, and how do they enable you to prioritize delinquent accounts for follow-up?

• How does combining different collection scores provide additional strategic insights?

• How do analytics enable you to reallocate resources to improve results?

• How did one organization use analytics to boost collected amount by 50 percent?

“Many collections and recovery organizations track performance using only numerical values such as average collections balance and total collected amount,” FICO said in the white paper titled, “0 to 60 – Accelerate Gains with C&R Analytics.”

Authors continued with, “Such measures tell you about the results you produced, but not much about why. And when period-over-period results shift up or down, they don’t help diagnose the causes of change.

“A more revealing way to look at your delinquent populations and results is with metrics based on account behavioral outcomes, such as payment rates, payment size and amount collected per account. Viewing populations according to such measures, you gain insights into why you’re achieving certain results,” they went on to say.

To download the FICO Insights white paper, go to this website.