Large Hungarian bank with significant volumes of non-performing foreign currency mortgages secured with difficult to sell collateral asked us to develop new late collections tools to decrease their non-performing mortgage stock.
We designed and operationally set-up new late collection tools of credit counseling and voluntary asset sale, including definition of eligible segment of customers, process design, targets definition and operational & managerial reporting. Also, we proposed improvements in legal collections processes. The new tools and legal collections adjustments were tested in pilot mode and after positive results roll-out into full production.
Despite the tough market conditions in Hungary, the bank was able to improve cash collected from NPL mortgages by additional 4.7 Mio EUR annually.