A Customer Knowledge-based Analytic Approach to Enhance the Efficiency of Debt Collections

This study highlights the role of knowledge management in the long run, towards building efficient debt collection mechanism. It points out the need to invest in appropriate knowledge management solutions for the firms operating in developing markets, especially the ones in the early stages of the product life cycle, in order to build competitive advantages through efficiencies in internal operations in the long run. The study describes a methodology using an illustrative case study of a successful application of knowledge creation and data mining solution for efficient debt collection in a retail bank in the US. It further extends the learning from the case and highlights the challenges and opportunities of developing such systems in nascent markets which have less evolved credit handling practices.