Case Studies

Super-Regional Bank Partners with Bridgeforce for High-Risk Portfolio Management

A bank sought to better manage its expanding high-risk portfolio. Bridgeforce’s two-phased action plan treated 30,000 high-risk accounts, improving treatment rates and reducing delinquencies. The project exceeded the bank’s expectations with 74% of acounts resulting in treatment.

Loss Mitigation Strategies Needed to Stem Growing High-Risk Portfolio

A super-regional bank faced a critical challenge: its high-risk portfolio was expanding at an alarming rate. The bank, aware of Bridgeforce’s proven track record of understanding unique challenges and finding best-fit solutions, turned to us for swift and effective loss mitigation strategies. Bridgeforce’s portfolio management tactics treated 74% of the portfolio’s accounts and customers awarded the treatment with a 90% approval rate.

Portfolio Assessment and Prioritization Drives Strategic Plan

Upon engagement, Bridgeforce’s primary objective was to triage the bank’s home equity portfolio to pinpoint loss mitigation opportunities. We swiftly conducted a thorough assessment of 5,000 high-risk accounts, uncovering gaps and potential improvements. This comprehensive review formed the foundation for a strategic, two-phased action plan designed to address both immediate and long-term needs.

In the initial phase, Bridgeforce focused on developing strategies to halt the increasing number of high-risk accounts. By prioritizing the bank’s resources towards the highest-value processes, they efficiently streamlined operations. Phase 1 successfully analyzed and treated the initial 5,000 accounts, which paved the way for the more extensive Phase 2, targeting an additional 25,000 high-risk accounts.

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Impressive Portfolio Management Tactics Exceed the Bank’s Expectations

The results were remarkable. Bridgeforce’s intervention not only shortened execution times but also significantly improved the bank’s treatment rates and allowed the bank to focus resources where they were needed. The outcomes were as follows:

  • 20% of customer contacts led to a financial assessment.
  • 74% of these contacts resulted in some form of treatment.
  • 90% approval rate for customers requesting treatment.
  • 8% of treated customers used the bank’s website prior to speaking with a Loss Mitigator and completed a financial assessment.

Additionally, the intervention led to fewer accounts becoming delinquent, thereby reducing potential charge-offs and mitigating the growth of delinquent loss inventories.

Reflecting on the project, a senior client representative remarked, “I’ve been in banking for a long time, and this project has been run more professionally and efficiently than any other I have seen.”

Bridgeforce’s timely and strategic approach and constant collaboration with the client not only met but exceeded the bank’s expectations, showcasing unparalleled expertise in risk management.

Why Bridgeforce

The bank was aware of Bridgeforce’s extensive client-side experience during the Great Recession and our ability to quickly understand the unique challenges, identify opportunities and find best-fit solutions to reduce the risk and improve treatment rates.

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