Safaricom is reportedly preparing to establish a new debt management tool aimed at curbing recurring defaulters.
According to the Financial Standard, the mobile operator says the enhanced system will feature robust credit scoring and thorough risk analysis to assess a customer’s capacity to repay a loan.
The tool is designed to offer real-time credit scoring and risk analysis for customers, utilizing their payment history and creditworthiness as key factors. Additionally, it will include “ageing reports” that offer a visual representation of outstanding debts, categorized by the duration they have remained overdue.
“These reports can help identify which accounts are the most delinquent and require immediate attention,” says Safaricom in internal documents.
Furthermore, the debt management tool will incorporate customer segmentation reports, offering valuable insights into customer behavior trends and payment records. This feature will enable the categorization of customers based on multiple criteria, including payment habits, creditworthiness, and demographic information.
“These reports can help tailor collections process to better serve the needs of different customer segments,” says Safaricom.
The telecommunications company accumulates various forms of debt, including digital lending, postpaid billing debt, and credit sales debt.
Safaricom notes that these different types of debt are managed through distinct systems within its operations.
“As part of our commitment to effective credit and collections management, we are seeking a provider for a comprehensive and dynamic debt management system for our debt portfolios,” the telco says.
-Additional Reporting by the Standard