Kian Foh, Group CEO at Collectius has extensive experience in implementing proactive and innovative financial solutions that meet current market needs and anticipate future demands, preserves customer trust, and ensures regulatory compliance.
In reality only a few leaders have the opportunity to help customers with financial difficulties. As the Group CEO at Collectius, Kian seized the opportunity available to lend a helping hand.
He understood that digital communication was the way customers preferred to be contacted, and when he engaged with them this way, there was more engagement and a reduction in complaints.
Kian ensured to translate his desire in helping and guiding customers in their debt resolution journey into actions producing favourable outcomes based on the below principles.
Formula for Secure and Streamlined FinTech
Kian, leveraging his two decades of experience in credit operations and risk management within the banking sector, advocates for strategically integrating risk policy into core credit operations processes. This systematic approach, he emphasizes, effectively filters out risky customers, ensuring a more robust and secure lending environment.
Kian’s deep understanding of credit operations and risk assessment empowers him to strike a crucial balance within FinTech. Even when he was working in traditional banks, he championed the development of customer-centric and streamlined solutions that prioritize user experience while simultaneously mitigating potential risks. This focus on achieving a win-win for both efficiency and risk management positions him as a valuable asset in the FinTech industry.
Approach to Efficiency
Kian spearheads a three-pronged approach to process reengineering and streamlining:
- He advocates for consolidation to achieve economies of scale.
- He champions the elimination of non-value-added processes from the customer’s perspective.
- He emphasizes automation wherever possible.
Understanding the human element is paramount to his approach. He recognizes that successful change hinges on effective communication. Therefore, before implementing any changes, he prioritizes clear and concise communication to ensure all affected personnel are well-informed and supportive.
Kian emphasizes customer-centricity throughout the process. He adopts a “customer in the shoes” approach, asking himself if he, as a customer, would appreciate multiple calls regarding different accounts at the same institution. By prioritizing the customer experience, he believes the streamlined processes will be more efficient and require fewer resources for customer outreach due to consolidation. This focus on a win-win for efficiency and customer satisfaction is a hallmark of his approach.
Streamlined Service and Global Success
Kian dispels the myth that cost-saving and customer experience must be at odds. He recognizes that customers crave simplicity and convenience. By leveraging his understanding of customer behavior, he devises strategies for delivering reminders through various omnichannel platforms, starkly contrasting traditional human calling methods. This not only enhances the customer experience but also reduces operational costs.
Kian emphasizes cultural intelligence as a critical success factor when implementing changes across diverse geographical locations. He underscores the importance of understanding the unique cultural nuances of each region. This awareness, he argues, allows for identifying potential roadblocks and navigating them effectively.
Furthermore, he champions the importance of establishing clear objectives for each project. He believes that transparent communication regarding goals ensures all parties involved are working towards a shared vision and understanding of the desired outcome. This emphasis on cultural sensitivity and clear communication fosters successful global implementation.
Customer-Centric Approach
Kian champions a two-pronged approach to reducing turnaround times (TAT) within the financial services industry. First, he advocates for eliminating non-value-added processes from applications. This translates to streamlining information gathering and ensuring customers only provide the necessary details.
Second, he emphasizes automation. He has implemented a system that automates straightforward applications, leveraging customer data linked to government agencies for Know Your Customer (KYC) checks and immediate decision-making through scoring engines. This approach empowers customers to receive near-instantaneous approval decisions after application submission.
Kian recognizes the critical nature of time efficiency in financial services. He identifies three key reasons:
- Capitalizing on Market Opportunities: Rapid execution of transactions allows firms to seize market opportunities and minimize risk exposure.
- Meeting Client Expectations: Clients expect prompt service, whether in loan applications, trades, or resolving inquiries.
- Enhanced Productivity and Competitiveness: Streamlined processes improve productivity, enabling firms to serve more clients effectively. Additionally, efficient operations can be a crucial differentiator in a competitive landscape.
Kian outlines seven key steps financial services firms can take to optimize operational speed:
- Process Mapping: Identify and document existing processes to pinpoint bottlenecks and areas for improvement.
- Automation: Implement automation technologies for repetitive tasks, increasing processing speed and reducing errors.
- Technology Upgrades: Invest in advanced software and hardware for faster data processing, real-time analytics, and seamless system integration.
- Standardization: Standardize procedures across departments to eliminate inconsistencies and delays.
- Training and Skill Development: Equip employees with the skills to leverage new technologies and methodologies for efficient work.
- Collaboration and Communication: Foster collaboration and open communication to facilitate swift decision-making and problem-solving.
- Continuous Improvement: Regularly assess processes to identify areas for further optimization. Implement feedback loops and performance metrics to track progress and drive continuous improvement.
Leverage of Analytics for Smarter Financial Decisions
Kian demonstrates a deep understanding of financial risk management by championing the Falcon fraud detection system. Falcon leverages advanced technologies to create a robust defense against fraudulent activities.
- Advanced Analytics and Machine Learning: Falcon employs advanced analytics and machine learning algorithms to analyze massive datasets of real-time transaction data. This allows the system to identify unusual patterns and anomalies that may indicate fraudulent activity, ultimately minimizing financial losses.
- Behavioral Analysis: The system goes beyond simple data analysis and incorporates behavioral analysis techniques. By establishing baseline customer behavior patterns, Falcon can detect deviations that could signal potential fraud. This proactive approach enables intervention before any financial harm occurs.
- Data Source Integration: Data silos are no match for Falcon. The system integrates seamlessly with various sources, including transaction data, customer profiles, and external threat intelligence feeds. This comprehensive view of potential risks empowers informed decision-making.
- Customizable Rules Engine: Understanding that a one-size-fits-all approach doesn’t work in risk management, Kian highlights Falcon’s customizable rules engine. Financial institutions can tailor fraud detection criteria to their specific risk profiles and regulatory requirements. This flexibility ensures the system can adapt to evolving fraud schemes and changing compliance standards.
- Real-time Response: Speed is critical in fraud detection. Falcon delivers real-time alerts when suspicious activity is detected, allowing for immediate intervention and mitigation efforts. The system can even be configured for automated decision-making, such as blocking transactions or requiring additional customer authentication.
- Scalability and Performance: Kian recognizes that effectiveness hinges on efficiently handling large volumes of data. Falcon is built to scale, ensuring timely detection and response to fraudulent activity even during peak transaction periods.
- Reporting and Analysis: Effective risk management necessitates ongoing evaluation. Falcon provides comprehensive reporting and analysis tools, enabling financial institutions to assess the performance of their fraud control measures, identify emerging threats, and continuously optimize their risk management strategies.
Expanding Financial Inclusion Through Digital Lending
Kian recognizes that the shift from traditional to digital lending presents a double-edged sword for financial institutions. While challenges exist, they are accompanied by significant opportunities.
Challenges:
- Legacy System Integration: Merging digital lending platforms with existing legacy systems can be a complex and time-consuming endeavour. This necessitates substantial investments in technology upgrades and infrastructure.
- Data Security and Privacy: Digital lending inherently involves the collection, storage, and transmission of sensitive customer data. This raises concerns about data security and privacy. Kian emphasizes the importance of robust cybersecurity measures to safeguard against data breaches and ensure compliance with regulations like GDPR and CCPA.
- Customer Onboarding and Authentication: Verifying borrower identities remotely and adhering to KYC and AML regulations can be a hurdle in the digital realm. Kian highlights the need for robust customer authentication processes that maintain a seamless user experience.
- Credit Risk Assessment: Assessing creditworthiness using digital data sources, such as alternative credit scoring models or transactional data, requires sophisticated analytics capabilities. Kian underscores the importance of ensuring the accuracy and reliability of these models to effectively mitigate default risks.
- Regulatory Compliance: Navigating the evolving regulatory landscape and adhering to consumer protection laws like TILA, or Fair Lending Laws, presents a challenge in the digital lending environment. Kian emphasizes the need for financial institutions to stay informed and ensure compliance with all applicable regulations.
Opportunities:
- Streamlined Customer Experience: Digital lending offers borrowers a more convenient and streamlined experience. They can apply for loans, upload documents, and track application status online, improving customer satisfaction and retention rates.
- Faster Loan Processing: By digitizing lending processes, financial institutions can expedite loan approvals and disbursements, enabling borrowers to access funds more quickly. This translates to enhanced operational efficiency and increased competitiveness in the market.
- Data-Driven Decision Making: Digital lending platforms generate vast amounts of data that can be harnessed for predictive analytics. This allows for more accurate risk assessment and personalized loan offers. Kian highlights the potential for financial institutions to leverage data-driven insights to optimize lending strategies and effectively manage credit risk.
- Expanded Market Reach: Digital lending empowers financial institutions to reach underserved or geographically remote markets that may have limited access to traditional banking services. This opens doors to new growth opportunities and fosters more inclusive lending practices.
- Cost Reduction: Automating manual processes and reducing reliance on paper-based documentation can significantly lower financial institutions’ operational costs. This translates to improved profitability and the potential for more competitive loan pricing.
A Passion for Financial Inclusion in the Digital Age
Following a successful 15-year career in traditional banking, Kian embarked on a new mission: leveraging digital lending to empower the underserved segment. He recognized a gap in the market—a plethora of lenders willing to provide capital but a scarcity of organizations dedicated to supporting financially struggling customers.
He set his sights on Southeast Asia, where the debt recovery industry remained largely analog. Manual processes and outdated technology dominated the landscape, offering little flexibility to address the unique needs of borrowers.
However, recent advancements have seen debt management companies embrace a data-driven approach powered by Artificial Intelligence (AI). This shift has optimized internal processes and transformed the customer experience.
Breaking Away from the Past: A Digital-First Approach
Traditional debt collection agencies rely heavily on call centers, a method fraught with inefficiency. Customers may not answer calls, or their contact information may be outdated. Kian recognized the need for a digital solution that complements existing strategies. This approach addresses industry-wide shortcomings in engagement, compliance, and customer expectations.
Aggressive collection tactics often backfire. Customers bombarded with calls feel harassed, leading to delinquencies and negative online reviews. Digital collection methods foster greater engagement. Real-time data reveals when customers open emails or visit websites, providing valuable insights into their needs and allowing for tailored solutions.
Building Trust Through Transparency and Choice
Kian’s vision is to be a digital-first, customer-centric credit management organization. Gone are the days of relentless phone calls. Customers can choose their preferred communication channels – email or text message.
The tech-enabled platform empowers self-service, allowing borrowers to resolve accounts digitally, modify payment plans, or dispute charges. This approach fosters a less stressful experience and cultivates a more positive perception of the organization.
Debt Recovery Reimagined: The Collectius Approach
Kian articulates their unique perspective on debt recovery. They refer to their approach as the ‘Collectius Way of Collection,’ which aims to transform the process into an opportunity for financial empowerment.
Collectius recognizes the importance of equipping customers with the necessary knowledge to navigate their financial challenges. They achieve this by providing financial literacy programs that educate customers on essential topics such as cash flow management and budget planning. This approach enables customers to make informed decisions and take control of their financial well-being.
Collectius empowers customers to take an active role in resolving their debt. They offer a self-service portal where customers can tailor their debt repayment plans to suit their individual circumstances. This flexibility allows customers to manage their payments through their preferred payment channels, nurturing a sense of ownership and control over their financial journey.
Empowering Financial Beginning
Collectius, a leading debt collection agency, firmly believes in providing financial empowerment to its customers. The company’s guiding principle, known as the ‘Collectius Way of Collection,’ aims to help customers achieve new financial beginnings. Kian emphasizes the significance of their relationship with customers. To maintain the highest service standards, the company regularly audits the conversations between its mediators and customers, whether conducted over the phone or online.
Measurable Impact and a Brighter Future
Collectius recognizes the inherent social good embedded within debt management and recovery. By recovering delinquent debt, Collectius empowers individuals to improve their credit profiles, ultimately strengthening their purchasing power and contributing to economic growth.
Furthermore, Collectius supports banks by facilitating the transfer of bad debt from their balance sheets. This frees up capital for banks, allowing them to continue issuing credit, which fuels economic activity.
Collectius’ success is demonstrably positive. They have already assisted over 150,000 customers in fulfilling their financial obligations, and they currently support over 100,000 customers and SMEs daily over 7 countries. Collectius empowers these individuals and businesses to regain access to formal credit, rebuild confidence, and ultimately secure their livelihoods by fostering financial literacy and competence. Collectius paves the way for a more inclusive financial system where both individuals and small businesses can participate and thrive.
Passion, Perseverance, and Financial Wellness
Kian emphasizes the significance of passion within the debt management and recovery industry. He recognizes the need for individuals to be genuinely motivated by helping others achieve financial wellness. He acknowledges that the industry faces misconceptions. However, he underscores the core purpose: to guide and support individuals on their path to debt resolution.
Beyond passion, Kian identifies key qualities for success in this field. Perseverance is paramount, as navigating complex financial situations requires unwavering commitment. A “can-do” attitude is essential for problem-solving and developing creative solutions tailored to each client’s unique circumstances. His focus on these qualities reflects his deep understanding of the human element within debt management and the importance of approaching each situation with empathy and dedication to finding effective resolutions.
