2024-09-30 Fraud, not as intention to misuse the data

Fraud in lending does not always have to be connected to people stealing the IDs or personal information. It is also connected to consumers that lend the money with no willigness to pay it back. Thst willingness might be initial or changing in time as they keep lending money.

I identify following things inflencing the willingness and amount of protection people build in lending:

a) willingness decrease due to financial situation that change rapidly to bad to be good again

b) willingness decrease due to advise by friend, attorney or any 2nd party connected to consumer

c) willingness decrease due to advice on social media

d) willingness decrease due to intiention to screw the world, as consumer had been screwed

e) willingness decrease due to secondary cash-flow issues

f) willingness decrease due to bad quality of underlying asset or mistreatment of the underlying asset

g) willingness decrease due to bad insurance policy or insurance making additional issues to be claimed

h) willingness decrease due to misunderstanding of the loan position by family members in the process of probste

i) willingness decrease due to disputes and other action done by consumer to avoid responsibility 

k) willingness decrease due to external position of the consumer and his disrespect to financial institution

All a)...k) can be identified and dealt differently. They are also important once the case is presented to the legal action, if mecesarry. It is not always to approach the consumer with force, as many of those situations are easy to be resolved in respectful manner.

If a financial institution has a tool to identify on which stage the consumer is and starts to pro-actively educate the consumer we have a great way how to decrease the amount of BK, amount of NPL, manage cash-flow amd liquidity of financial institutions or even improve financial system as whole.

2024-05-26 Human first

I create every solution with concentration on human being, on concentration of our needs and ability to build in the case we want to build and ability to destroy if we feel to destroy.

I'm trying to find a solution that will basically focus on a human being as in the center of every financial solution. Always understand if it is bringing in the value, or if it is adding to the aims and goals that the consumer is having. So it also applies in terms of credit scoring or in terms of a debt collection making sure that even we propose the solution or we looked through the data and try to analyze it. In the end of the day it brings the value to the consumer so he or she can grow. Life finds not easy to adopt but it it evolves around a very rigid mathematical model. Collection and IT prediction and applying it to the life as it goes and it comes now putting this in consideration I would like to develop different models that are looking on the life itself and that will be able to predict what is the best way or the best model how to predict short-term long-term medium term future vidiability also to define potential a weak point or potential places where this plan is being weak.

How could such a solution look like? first and foremost we have to define the data that we are going to monitor through the process of the communication the data obtaining and evaluation and the ability to return those data and turn it to the potential cash form once we do have those data and we have collected enough data points that will allow us to decrease the R square we will be able to start to calculate not only the positive but also the negative scoring 

2024-05-25 Key, key, key on profitability in developed market

If you are considering to make it on a developed market bring forward following:

a) am I good in analyzing what makes me money?

b) am I able to decrease the amount of workforce used in my processes and where is the limit?

c) what is my competition currently charging for the service and how can I charge more

d) will my potential customers trust me be able to give me more business

e) am I able to fail and learn?

f) how many employees I need and for how much time a week?

g) can I setup a good compliance structure and setup so it does not hurt me later?

i) am I able to meet with customers and able to fly?

j) how much money I have to invest for marketing and self development

k) does family support me

It is possible to succeed. It needs to utilize the resources better than current competition and produce outcome less risky and with higher value added. It takes the village, but that village is nice and full of satisfaction.

God bless us all

2024-05-25 Opening a business in US

Do you want to open a profitable business in USA?

1. Make sure you use any software you have control over ... so you can optimize your processed

2. Make sure you get paid for improved quality and you can measure it yourself

3. Be prepared to have an attorney to protect you

4. Be sure you utilize your resorces and makde sure you see a short term and long term incured costs

5. Travel, travel and travel

2023-05-20 Respect in financial services

 Financial services are blended with emotions. As it involves money, that people saved during their life by postponing their spendings, working extra hours or staying in work they did not like....they had to try harder to get those savings. It is not a surprise, on the other hand, if such finances are not managed professionally, respectfully or with reasonable understanding by the customer...problems can arise.

Respecting the consumer is even more important in case of debt collection. It is already a position, where the consumer is pushed, added pressure is evident and many of them remember this unpaid balance. 

Financial engineering

Financial engineering, not as a process of portoflio diversification, not as a self reflection on underwriting process by lender and not as a process of fabricating the value.

Financial engineering as a process of looking on portfolio in delinquency, especially close and poet charged-off. Many of the financial products are underwritten years before the become deliquent. This is why it is almost impossible to predict all the new trends in fraud, in ability of skip the colleralizaion, regulator moves and quality of models and data obtained.

My vision is to look on loan portoflios once they decline, charged-off. And get deeper in the logic how was the loan underwritten and what did change. What data and logic might be found to bring the consumer to current payment status. Deep knowledge and understanding, research and experience is critical. So the conculusions are not shallow, without value or with limited value

2023-04-15 Litigation on charged-off debt

Litigating on charged-off debt depends on following:

a) deceased (1-2 years)

b) statute of limitations (4-10 years) / state

c) BK (dismissed / discharged) and time since last BK

d) assets/liquidity in other states 

e) credit card liquidity and law underwritten 

f) community property law

g) type of debt

h) admission of debt / last downtown / last payment 

i) current law and updates if any

j) type of debt / debt application purpose (personal,  business)

k) military status

l) outstanding balance

m) collateralized / uncollateralized debt

n) type of court (justice of peace / district court)

o) settlement agreement if any / breaking of it / clawback provision

p) and others....

Clients hiding their assets might be undertaken to further investigation to find those assets to protect depositors of the bank / credit union