The Charlbury Group has declared that the lending sector now has the ability to use big data to develop specialised arrears strategies.
The technology arrears firm explained that the use of big data in other sectors is already prevalent with supermarkets using big data to drive product innovation and the NHS is looking at using big data to personalise healthcare for every patient.
Lenders use AMS to distribute instructions to field agents, litigation solicitors, contractors and asset manages and receive in return reports and independent management information. The Charlbury Group has five years’ worth of arrears data processed through their Arrears Management System [AMS] where meaningful management information can be accessed.
The firm said that lenders can now look at the journey that different people take on the arrears process and evaluate the success or failure of remedial actions. This, it claims, could feasibly allow lenders to structure a specific arrears strategy based on hard data and proven results or at the very least be able to predict which factors might influence a particular outcome.
Cases can be tracked from the instruction of a field agent, through the litigation process to the property being taken into possession. AMS can then follow the chain of events to the eventual sale of the property taking into account myriad factors such as the time to sell and the sale price versus the asking price. Additionally, because this data can be view on a regional basis a more educated opinion on the possible outcome can be formed with a high quality of expectation of how quickly a sale might be made.
David Ford, director at The Charlbury Group, said: “It’s exciting to consider how you could look at the circumstances of a mortgage in arrears and be able to predict with a certain level of confidence the likely outcome. We now have five years of arrears data that has been processed through our arrears management system logging dozens of milestones through the various stages of the arrears process.
“We can now provide lenders with the opportunity to make more informed choices though the use of data captured within AMS.”
