Our client, a leading private sector bank offering services across six verticals: corporate and institutional banking, commercial banking, branch and business banking, retail assets, development banking and financial inclusion, treasury and financial market operations, was facing a challenge of increasing non performing assets (NPA) or delinquent accounts.

The client wanted to analyze the delinquent accounts to mitigate its losses by creating personalized collection and recovery strategies.


TransOrg created two models to identify customers who would flow to the next bucket (who fails to pay even in the next month) or remain stable / normalize (pay the pending amount or clear previous dues).

For customers who flow to the next bucket:

  • The preliminary step was to calculate the risk score associated with each defaulting customer
  • Model was developed considering the following variables:
    1. Transaction data of last 6 months
    2. Credit Bureau score
    3. Responses during past collection attempts
    4. Daily credit card balance

Segmented the defaulting customers into 5 different bands (from very low risk to very high risk) based on the risk score from the model


The output of the model is used by the collections and strategy team to uses a feedback technique called “test and learn” where the client assigns different strategies for different cases/buckets and run a test. This helps the client to recover its account receivables more efficiently.

Learn more about TransOrg’s value proposition, solution methodology and implementation approach