Area Collection Manager - Unsecured Flows - Bangalore

Business

Financial Services

Unit

Aditya Birla Finance Ltd.

Location

Pan India

Poornata Position Number of the job 

Reports to: Poornata Position Number

Poornata Position Title of the job 

Area Collections Manager

Reports to: Poornata Position Title

Regional Collections Manager

Function

Risk Management & Compliance

Reports to: Function 

Risk Management & Compliance

Department

Risk & Legal & Collections

Reports to: Department 

Risk & Legal & Collections

Designation of the Employee:

Area Collections Manager

Manager’s Designation:

Regional Collections Manager

Date of writing/ Updation of JD

20^th Jan 2023

To manage the collections process at a location level (usually a Metro or State Capital) or few Tier 2-3 cities, working with non-performing defaulting borrowers to create optimum recovery solutions. To liaise with in-house and external collections teams and to oversee their activities, ensuring compliance with all internal policies and relevant regulations.

2) Dimensions: Mention quantitative or qualitative parameters that are relevant for the job and provide a better understanding of the scope and scale of the job.  

Team Size  

4-9 (varies by location)

Other Quantitative and Important Parameters for the job 

• ECL Targets for the State / Product  for Stage 1, 2 & 3 (as applicable) – direct impact on P&L
• Cost of Collections – deliver a cost performance better than the budget at the State Level
• Hiring, building and mentoring a high performance collection steam to manage the State / Area / Region

Organization Context

Aditya Birla Finance Limited ("ABFL") is a lending subsidiary of Aditya Birla Capital Limited. ABFL is registered with RBI as a Systematically Important Non-Deposit accepting Non-Banking Finance Company (NBFC). ABFL is one of the top private diversified NBFCs in India. As of 31-Dec’20, ABFL has a pan-India presence with 91 branches and a lending book of Rs. 45,560 Crores.

ABFL offers end-to-end lending solutions to a diverse set of customers - Retail, HNI, MSMEs, and Mid & Large Corporates through secured as well as unsecured loan products. The diverse range of lending products includes Retail Small Ticket Secured and Unsecured Loans, Unsecured Personal Loans, Unsecured Business Loans, Health & Education Loans, Digital B2B2C and B2B2B Small Ticket Loans, Small Business Secured Loans, Loans Against Property (LAP), Lease Rental Discounting (LRD), Construction Finance (to Real Estate Developers), SME Loans, Capital Markets Loans (Loan Against Shares), Supply Chain Finance, Mid and Large Corporate Loans, and Infrastructure Finance loans. ABFL also has a Wealth Management division. 

ABFL is rated “AAA” by India Ratings, ICRA and CARE (reaffirmed in 2020). ABFL secured the ABG Business Excellence Award in 2017 (Silver), and 2015 (Bronze), and multiple other Awards on forums like CII

Job Context:

Collections function carries out monitoring of client wise exposure and portfolio exposure to identify ‘early warning signals’ of stress and to minimize NPAs. This monitoring is done by dedicated teams who specialize in managing delinquent customers who have come under financial stress due to unfavourable market events / changes in business patterns and as well as from those customers who have intentionally stopped payment of dues with mala-fide intentions. It also carries out overdue loan recovery from defaulting clients.

This role is responsible for enhancing business profitability through effective management of the delinquent portfolio in the respective area. The incumbent will be accountable for field collections for the customers in the area. For this segment, the collections model is a combination of in-house (for ticket sizes >10L) and partly agency-driven (for small ticket sizes) so the area manager will need to effectively oversee both inhouse collections officers as well as agency managers. 

Achieve collections targets and financial goals for the area

• Monitor and Control delinquency and minimize credit losses for portfolio
• Drive higher resolution rates. 
• Ensuring adequate headcount availability location-wise / bucket-wise / segment-wise.
• Ensure Charge offs are minimized and higher recoveries from charge-off accounts.
• Review, maintain control and minimize the cost incurred towards collections of dues.
• Daily monitoring and regular reviews of delinquent portfolio to make account level

Portfolio review and monitoring

• Monitor customer accounts across the region, identifying and flagging likely cases of default or delayed payment 
• Work with non-performing defaulting borrowers to create optimum recovery solutions
• Developing various MISs to show different cuts and trends in the portfolio which can lead to necessary corrective action by collections team to enhance their performance and shows area of improvement.
• Provide regular inputs to Management and all the other stakeholders such as Sales, Risk, Policy Team on various aspects of collections resolution and delinquency trends, Negative Areas, Negative Profile, Non-Starters, SKIPs, Fraud Cases, etc.

Vendor Management

• Liaise with agencies to drive collections processes efficiently.
• Oversee selection processes for externa agencies
• Continuously monitor agency performance
• Exercise adequate control on agencies to ensure collection of overdue debts in a timely manner

Compliance and audit

• Ensure that all documentation     related  to  the     collections  process  is maintained  in     accordance  with  internal     norms  and regulatory requirements         
• Respond   to customer complaints regarding the collections process, taking steps to ensure a satisfactory outcome for both ABFL as well as its customers  
• Plan and implement periodic audits of the collections teams,  ensuring their compliance with all relevant policies and regulations 

Customer escalations and complaints

• Coordinate with the legal team and senior management in the event of escalated cases to ensure compliance with relevant regulations

People Management

• Provide oversight and be a coach and mentor for the team
• Ensure regular functional & behavioral trainings of team members in collaboration with HR
• Participate in relevant talent management and people development activities to ensure a healthy pipeline and an engaged team

• Collections Officer: To manage the collections process for a set of delinquent accounts within a location, working with non-performing defaulting borrowers to create optimum recovery solutions.

• Agency Collections Manager: To manage the collections process for a set of delinquent accounts within a location, working with non-performing defaulting borrowers to create optimum recovery solutions, ensuring compliance with all internal policies and relevant regulations

Internal

Regional Collections Manager, Collection Officers, Agency Managers

Daily / regular

Portfolio update and alignment of strategy and activities

Credit/ Policy Teams

Weekly

Updation of Collections Cases, MIS, Bounce details etc. Updates on policy changes.

Legal Team

As needed

Escalations, customer complaints

External

Collections Agencies and Vendor Partners

Regular

Visits / discussions on portfolio; Reviews, case updates, exception reporting

Customers

As needed

Escalations and follow-ups.

Job Holder

Reports to (Manager)

Name

Date of Entry / Approval