AsiaCollect, a pioneer in providing integrated Credit Management Services (CMS) in Southeast Asia, has acquired its first consumer non-performing loan (NPL) portfolio valued at USD6.5 million face value from a leading global financial institution in Vietnam.
Mr. Tomasz Borowski, CEO and co-founder of AsiaCollect, said, “We see immense opportunity in helping banks and consumer lenders manage bad loans by changing the way they approach debt collection. By purchasing NPL portfolios, we enable them to focus on their core task of lending and offering services to consumers. At the national level, it increases capital resources for lending and strengthens a country’s economic growth. We are focused on executing on many more such transactions going forward.”
In addition to purchasing portfolios and carrying out collections on behalf of lenders, AsiaCollect also licenses its technology using a SaaS model and provides bespoke advice for clients with nascent in-house collections processes. AsiaCollect uses proprietary technology to streamline and automate a majority of debt collection processes while minimising the need for traditional field collection which presents a reputational risk to lenders and an embarrassing, hostile experience for consumers.
Over 60 percent of AsiaCollect’s collections processes are currently automated, with the company targeting full automation – including employing behavioural psychology that allows call center operators to communicate effectively with different personality types – within the next 12 months. At present, AsiaCollect reaches out to customers through automated SMSes, interactive voice recordings, and predictive dialing systems, which increase not only the likelihood of reaching the customer, but also the recovery rates for each targeted customer.
AsiaCollect is currently managing over USD 45 million in debt and working closely with close to 20 companies in Vietnam, the Philippines and Indonesia, including banks, financial institutions, non-bank lenders, and digital lending startups. Additionally, AsiaCollect is helping over 112,000 debtors across the three markets become debt free.
AsiaCollect is led by an international leadership team with decades of experience in CMS and consumer finance in emerging markets. The team is supported by a highly experienced data science team in Ukraine that brings with them strong knowledge and expertise in pricing consumer NPLs through business cycles.