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

2023-04-11 Assets and back to liquidity

Lending money comes with the risk of consumer lossing the willingness or ability to pay the debt. Where willingness can be resolved through FICO score hit, compliance and debt collection, demand letter, filing suit and so on, the ability is often miunderstood.

Lets define ability to 4 different groups:

a) intermediate ability to pay, if it is from deposits, employment income, quick loan to get funds or any other way of getting consumer to tranfer liquidity from what he has towards lenders

b) ability in time, if is from future employment, future extra work done by borrower, future release of savings or any other liquid help consumer might get

c) turning assets to liquidity, as consumer might have cars, houses, other assets

d) speculation on future income stream or asset stream from consumer

Basically ability to pay debt is not current amount of money the consumer has to pay towards the debt. It is a sum of current and future Assets turning to liquidity. And if the consumer is an owner of the house it is a future ability of anyone interested in getting the house post life of the consumer.

This is, why bothering if the consumer and pushing does not bring a tons of value. Portfolio manager needs to support the consumer, wish him well and make sure the consumer keeps motivated to get more assets or income stream. 

The question stays how far shall/may the debt collector help the consumer to get back on his/her feet?

Offering a settlement might help, the price is paid on the side of depositors, that out money in the bank. Considering the settlement campaings to cover at least the loan installments wo interest covers deposits, but no the costs of the lender (like wages, return to investors, rent, compliance costs, marketing costs and so on)

Working with consumer and effectively sending consuner varios non-profit or non-government offers (like food coupons, housing help, re-education resources, help with taxes, disaster help) supports the consumer and esrns his trust. Is the consumer willing to take this road and meet the loan portoflio manager in the middle is the question.

In the end, charged-off portfolio management is an extreme opportunity for the lending business to keep stability of the economy and its growth. Seeing the potential of the consumer as holistic, as economically viable in current and future value in both perfectly liquid, quazi-liquid and back-on-the feed liquid assets represents the additional opportunities to grow. On all three sides. On the side on the borrower, on the side of the lender and on the side of the portoflio manager.