Using New Technologies to Enhance Business Performance

1. Using New Technologies to Enhance Business Performance Donna Weaver, RNN Group

2. Session desription • Recent and pending changes to collections and recovery regulations have stretched existing systems and resources, resulting in ever rising compliance costs and risk.  Learn how top U.S. credit issuers and their collection channel partners are using an innovative technology to improve the consumer’s experience, enhance collections, and increase regulatory compliance.  Representatives from two leading-edge companies will highlight ways to streamline your operations by leveraging the latest technologies.

3. Leverage data & technology outsource model • First Vendor best of breed partner/outsource model • Jim Van Schaik, Lexis Nexis • Donna Weaver, Amex, Fortune 500 financial shared service center • Build the most efficient, cost effective, secure service model in the marketplace • Clients focus on core competency to achieve maximum results

4. When to invest in technology for data? • Security and compliance • Find people faster • Reduce expense of finding people • Increase resource scalability • Cash flow business

5. Procuring DataTRADITIONAL waterfalls • Vendor sets • BK, Deceased, Military (sometimes phone, address) • 1-2 vendors • Verified Place of employment, 60-120 days to get all hits • 2-4 vendors (as high as 6) • Phones (RPC -verified phones- & raw) • 1-3 vendors • Raw place of employment • 1-3 vendors (as high as 8) • Verified Banks, 30 days • 1 vendor (high as 2) • Raw bank • 1-4 vendors

6. Internal ResourcesGoal: achieve maximum results in shortest period of time • Testing new providers • Manage files through waterfall(s) • Use internal collection and/or skip tracing resources (no value efforts) • Work through raw data, typically 3-10% verify • Manage not buying same bad data multiple times • Manage multi vendor security and compliance docs

7. ROI • Cost of data • Cost of resources • Security and compliance

8. Leverage technology and best of breed data partner • First data outsource model – one-to-many connection • Multi product, multi-tier product types under one umbrella • Technology to streamline processing and custom build waterfall rules within system • Full security and compliance

9. One to Many Custom Waterfall Services Products

10. RNN multi-vendor waterfall flow (ED) example

11. Best of breed technology & data partner • One secure and compliant partner • Remove no value touch points in collection environment • Accurate data faster • Lower data costs • Scale resources on value add • Control • Consistency • Visibility

12. Cash flow • Leverage extended pay terms, • Rev share contingency pricing model • Drive highest ROI, shortest period of time

13. Thank you! Donna Weaver RNN Group donna@rnngroup.com 818-601-7451 866-466-5996, extension 700

14. Innovative Receivables Management in a Changing Regulatory Environment

15. Agenda • Challenges • Solutions • A Different Idea

16. Challenges Affect issuer, agency, legal, and debt sales • Downstream Information Supply Chain • Upstream Information Supply Chain • Debt Validation • Information Traveling with Debt (e.g. complaints) • Compliance Management • Vendor Oversight • Constant Change

17. Solutions • Existing systems and processes • Build custom proprietary solutions • A different idea - Exchange and Repository Solution

18. Convoke Overview • What We Do • Securethird party data and document exchange and repository • Vendor oversight • Compliance management • Software-as-a-Service • Initial Market Focus • Agency collections • Legal collections • Debt sales • Market Adoption • Customer relationships with major credit issuers • 109 state level attorneys and 5 national legal networks • 22 national collection agencies • 119 registered debt buyers

19. Exchange & Repository Credit Issuer Third Parties Agency #1 Agency #2 Legal Debt Buyer 1 2 3 Single interface System of record integration Bi-directional information Measure, analyze, report Vendor oversight – audit/edit Compliance management Mobility across channels Compliant & dispute tracking Internal/external audit tool

20. Exchange Functionality Debt Buyers • Documentation available prior to or at time of sale • Document ordering and delivery • Billing, cash collections, enforcement of issuer/debt buyer contract terms • Chain of title tracking • Complaint tracking • Audit and vendor oversight tools Agency and Legal • Issuerandthird party data and documents maintained together • Common scoreboard • Immediate access to data/documents addressable at account level • Document pre-load, ordering, delivery, and tracking • Case ready legal files • Complaint tracking • Debt validation and dispute resolution • Upload data/documents from channel partner based upon issuer criteria • Audit and vendor oversight tools • Easily move accounts among channels

21. Exchange Metrics

22. Large Bank Document Types

23. Large Bank Document Types (cont.)

24. Adoption Drivers Document Exchange & Repository • Bi-directional document mobility • Data and documents travel with accounts across channels • Detailed document order and delivery tracking controls • Transparency yields improved consumer experience • Shortened timeline to resolve complaints and concerns • Analytics identifies area for process improvement Improved Consumer Experience Regulatory Compliance • Enables compliance with regulations • Loan files addressable at account level • Adaptable to changing regulatory environment • Complete visibility to vendor performance metrics • Issuer/vendor see the same information • Internal/external audit tool Vendor Oversight • Enhanced revenue and/or cost reductions for issuers • Cost reductions for collection channel partners • Improved collection rates Improved Economics

25. Exchange Examples Stocks and Bonds Shipping Telecommunications Tickets Unsecured Lending Commodities

26. Change is hard, but it is possible

27. Appendix A Selected Screen Shots

28. Audit Detail

29. Audit History

30. Create New Complaint

31. Complaint Documents