Recoveries Pricing Benchmark Analysis Case Study

This case study outlines the engagement of the TDX Group Advisory team by The Growth Company Business Finance (GCBF) to conduct a comprehensive strategy review of their early and late arrears management capabilities. The objective of this engagement was to enhance efficiencies and effectiveness within GCBF's collections strategies, data management, and execution flows. The analysis led to a significant negotiation resulting in a 50% reduction in supplier fees, translating to an annual cost saving of £200K. Additionally, the implementation of a new Management Information (MI) Framework was introduced to improve Debt Collection Agency (DCA) management and compliance. The study also discusses the transition towards a champion-challenger DCA strategy, which is estimated to yield further performance improvements ranging from 10% to 20%. The project was executed in alignment with the latest Consumer Duty regulations, promoting a customer-centric approach in operations.