Case Studies

Building Financial Stability: Bridgeforce’s Strategic Playbook for Credit Counseling Amidst Crisis

In the midst of the mortgage crisis, financial institutions were faced with the daunting task of providing support to distressed customers while grappling with internal inconsistencies. Bridgeforce’s collaboration with lenders during this time helped their customers reach much needed financial stability.

Bridgeforce stepped in and helped financial institutions across the industry navigate complexities from the mortgage crisis with a unified and holistic approach. Our playbook for credit counseling improved lenders’ ability to achieve higher success rates when assisting their customers, raised customer satisfaction, and lowered reputational risk.

Challenge During 2008 Mortgage Crisis Unveiled the Complexity of Customer Support

As the mortgage crisis of 2008 unfolded, financial institutions found their efforts to assist customers falling short due to fragmented approaches.

Customers felt helpless and needed support; not only in the form of treatment options to weather their unique hardship, but also often in the form of financial guidance and education. Many customers, whether it be out of panic, frustration or simply embarrassment, eventually stopped responding to repeated collections outreach.

In response, banks attempted to put customers on internal hardship programs. But many of these efforts weren’t sufficient because they were only addressing one account at a time. Additionally, financial institutions were instructing their agents to stop offering advice on credit management to avoid inviting unwanted liability risk.

Recognizing the need for a more cohesive strategy, Bridgeforce sought to understand and address the challenges inherent in providing support during such trying times.

“Many customers, whether it be out of panic, frustration, or simply embarrassment, eventually stopped responding to repeated collections outreach by their bank.”

Bridgeforce’s Collaborative Playbook Provided Holistic Solutions for Consumer Credit Counseling

In response to the financial crisis, Bridgeforce developed a groundbreaking playbook for consumer credit counseling. This strategic guide unified the efforts of financial institutions, providing a comprehensive approach to credit management during challenging periods.

The focus was on supporting customers while ensuring responsible risk management for lenders. Bridgeforce’s collective experience resulted in the design and execution of strategies that took a holistic view of each individual consumer’s unique situation and presented all opportunities to be successful in paying off obligations.

Consumer Credit Counseling Playbook in Action to Improve Customer Well-Being

During this period, one notable example was a bank that initiated a first-of-its-kind program to collaborate with three nationally licensed credit counseling agencies. Their proactive approach became a model of transformative collaboration in the financial services industry.

The bank began introducing customers directly to counselors from the three agencies as part of a transfer process. Simultaneously, a tailored program that was integrated into the bank’s collections software prioritized the transfers to agencies before putting internal programs in place, especially for customers with multiple unsecured creditors.

The results spoke volumes; the bank saw higher payment success rates, greater customer satisfaction, and a significant reduction in reputational risk.

Contributing to National Policymaking Through Collaboration

 

The collaborative efforts of Bridgeforce gained recognition when members of our leadership team, including co-founder John Sanders, were invited to Capitol Hill. His insights and strategies were shared with Senate staff, contributing to a collaborative approach to national policymaking during the financial crisis.

Clients Feel Empowered, Resilient, and Supported During a Challenging Period

Bridgeforce advisors enabled clients to navigate the complexities of the mortgage crisis with a unified and holistic approach. It unlocked new levels of financial stability for their customers.

Plus, our clients experienced improved success rates in assisting distressed customers.

Our approach was also more customer-centric than anything done before. By prioritizing transfers to credit counseling agencies and addressing the unique needs of the customers, clients could enhance overall customer satisfaction.

The proactive measures, including the prioritization of transfers to credit counseling agencies, subsequently resulted in lower reputational risk for the clients.

Ultimately, clients felt empowered by the collaborative strategies introduced by Bridgeforce. The playbook and warm transfer initiatives empowered clients to work hand-in-hand with credit counseling agencies, fostering a sense of collective responsibility and resilience.

Empower Your Institution: Discover Collaborative Stability with Bridgeforce

In an era defined by uncertainty, Bridgeforce stood as a trusted advisor in resilience, redefining the financial services landscape through collaborative innovation and expertise. Explore how our consumer credit counseling playbook can empower your institution in times of future crisis.

Navigate challenges with confidence, guided by the collaborative success of Bridgeforce’s advisors. Contact us now.

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