1. Innovation in the ARM Vertical; Trends and Best Practices Work smarter. Collect more. Combine Workflow, Analytics and Partner Communications to dramatically boost results Jerry Arehart Regional Sales Manager, ARM Division Interactive Intelligence

2. Evolution of Collections & Recovery  Basic Collections Functions  Hard-Coded Decisioning Processes  Portfolio and Collector Level Reporting  Outsource Accts based on quota or limitations manually  Accts are ‘bucketed’ by DPD  Generic User Interface  Green/Screen  Basic Dialer Integration  Enhanced Collection Functions  Flexible acct decisioning  Automated and on-request reporting  Client/Server Applications  Scripting emerges  Emergence of Predictive Scoring  Automated Account Placement  Efficiency is stressed – limit keystrokes!  Predictive Dialing  Custom Interfaces based on Collectors Role  Full on-line integration with other applications and vendors  Champion/Challenger Strategies  Acct Placement based on Predictive Variables  One System for Collection and Recoveries  Focus on the Client rather than acct 20 Years Ago: ‘Dialing for Dollars!’ Simple Management Strategies Today (and Beyond): Focus on User Interfaces Treat Client rather than the account 10 Years Ago: Stress Efficiency Use of Analytics Emerging

3. Common Challenges in Receivables Management Legacy systems no longer viable to address rising business requirements Product & organizational complexity Complex integrations to systems and vendors Ability to quickly support changing business requirements and data access needs Loss of productivity and effectiveness due to number and complexity of ‘hand-offs’ that occur throughout the C&R cycle Lack of visibility into key performance metrics Targeting the right resource for greatest return Multiple CRM / HOST systems to manage Increasing competition to accommodate a consumers communication preference What to do with all the data on the consumer? Inability to quickly change a collections strategy Increased attention to the consumer experience Increase cost of doing business Effective bi-lateral communicate with outsourced agencies.

4. 2014 Trends & Hot Topics 1.Maintaining customer loyalty when accounts become delinquent 2.Compliance for Client, Local, and Federal regulations. 3.Best ways to increase automation 4.Focusing agents on tasks that deliver the greatest ROI. 5.Cloud grows for software applications

5. Workflow Automate business rules, processes, recovery strategies - collections, recovery, litigation, agency management & more Start with business defined processes Configure with visual flowcharts Run multiple workflows simultaneously Create, test and deploy workflows – without help from IT Consistent adherence leads to better compliance Greater efficiency means collecting more Need a tool to accommodate all the data…

6. Advanced, integrated analytics allow an organization to target the right accounts with the right effort to significantly improve bottom-line performance Analytics Integrated Analytics

7. Analytics Solutions Output can be a score, a treatment, or both Models for Collections and Recovery o Event probability: roll from x to y, payment, charge-off, bankruptcy, etc. o Amount: expected collection amount (ECA), amount at risk, net present value (NPV) o Treatment Recommendation: call, no call, best time to call, etc. o Contact Channel Optimization: Letter, SMS, Text, Call and IVR (Virtual Agent) o 3 Party Optimization: place vs. sell, agency vs. legal, agency A vs. agency B

8. Visibility into business operations Empowered to make informed decisions, effect change Offers views of what you need to see – a single agent, a unique portfolio or the entire enterprise Accommodate multiple data sources Easily configured by the end-user Greater visibility= higher compliance and adherence to business rules. Analytics: Key Performance Indictors

9. Effective Creditor/Agency Management Agency Manager Seamless integration with internal and third party systems o Greater Transparency o Automated requesting and complex multi-step processing o Paperless processing o Multiple connectivity options o Real-time or batch transmission Partnering industry leading vendors, suppliers, and service providers, including leading analytic solutions Robust tracking, monitoring, and performance reporting Network for deploying analytics Data Suppliers Coll. Attorneys OCAs Partners / Vendors

10. Data Suppliers, Vendors, Service Providers WEB-HOSTED ASSIGNMENTS -Asset Remarketing -Attorney Referral NOTIFICATIONS / COLLABORATION PORTAL – Forum VENDOR ACTIVITY REPORTING ELECTRONIC WEB MAILBOX Collection and Recovery Topography Frame Relay / Internet / VPN PREDICTIVE ANALYTICS Vendor-A Vendor-B Vendor-C XML Direct Link / Integration AGENCY MANAGEMENT DECISION SOFTWARE CSR / AGENTS

11. Business Case for an Integrated Solution “Investment by retail lenders in solutions to support collections or recovery processes has long lagged other credit business processes. Consequently mature and disparate systems abound. Combining workflow, scoring and analytics with partner communications into a single end-to-end collections and recovery solution allows credit grantors to move beyond tactical to strategic initiatives.” - Christine Pratt, Senior Analyst, TowerGroup

12. Decision Management in Action: Managing Risk in Financial Services Problem: Complexity of placing accounts with agencies and managing and measuring those agencies to achieve optimum performance Solution: Implemented Agency Management Services and Enhanced Reporting Service Results: Recognized Partner Network as a “Strategic Platform” Increased productivity by 30% within the first year

13. What “OTHER” innovations are happening in the industry? Communicate with the consumer on their preferred “channel” Social Media Significant advances in call analysis Advances in speech recognition Pure - Cloud data centers

14. Work the way you want while injecting decision-critical information into the formulation of more efficient collections and recovery strategies. You get more precise control, greater staff productivity and increased collections effectiveness. Work Smarter

15. Q & A

16. Thank you