Early collection - NPL prevention & predictions

"No touch collection" is important in developing countries as Indonesia, as India and in many others. By "no touch collection" I understand any way the creditor or him appointed company does not face the debtor.

Facing the debtor brings many challenges,  naming few of them:
a) costs
b) pressure on effectivity
c) miss management by 3rd party
d) distance to travel
e) avoidance
f) legal problems
g) inconvenience for debtor
and so on

In current era of social connectivity, cell phones, messages, applications, online card payments, databases the debtor may be contacted by various means and various ways. U may even make debtor happy by reminding him gently he is overdue without almost any costs. Some may suggest, that focusing on contacting debtor before he/she will become one will decrease %of NPL before the loan is given. Patterns, as the ones by a debtors denying to pay even they have an option to do so are also common. And this debtors than make much harder for the new ones to receive loan.

Therefore we can classify different moments of the unwillingness:
a) not being able to pay at all
b) not willing to pay even being able to
c) not being able to pay due to the lack of cash
d) 3rd party default

It is amazing to find out, how even 1% of additional "no touch" collection changes the classification of the financing portfolio. Why is that?

Given an example of loan for one year, amount of 100, interest rate of 30% p.a..... usual consumer loan

P&L income from the loan is around 15, as the installment is paid monthly. Whole loan is 100, therefore exposure is 6times bigger than the income (100/15+). Final profit of the financial institution may be around 1-2. Therefore a bad collection, especially "no touch collection" can shift the final profit easily to negative numbers (loss) or exceptional profit (100%-50% increase). As every shareholder is focused on ROE than increase in return by 50 or 100% changes the ROE dramatically and therefore allows to attract more funding, or make the investor more open to additional risks.