Area Collection Manager - Unsecured Salaried - Jaipur

Role Overview

This position is dedicated to overseeing and managing the collection processes across a designated geographical area, often a metro or state capital, including some tier 2 and 3 cities. The focus lies on managing accounts of delinquent borrowers, creating optimal recovery plans, and supervising both in-house and external collection teams to ensure adherence to internal guidelines and regulatory standards.

Scope and Team

• The role supervises a team of 4 to 9 members depending on the location.
• Responsible for managing expected credit loss (ECL) targets for various stages within the state or product portfolio, directly impacting profitability.
• Focused on managing collection costs efficiently to remain under budget limits.
• Involves recruiting, developing, and mentoring a high-performing collections team at the regional level.

Company and Context

Aditya Birla Finance Limited (ABFL), an RBI-registered systemically important NBFC and part of Aditya Birla Capital Limited, ranks among India's leading private diversified NBFCs with an extensive presence including 91 branches and a significant loan portfolio. ABFL provides a comprehensive range of loan products to diverse customer segments, including unsecured and secured loans, SME and corporate loans, alongside wealth management services. The organization has consistently earned top ratings and industry accolades over the years.

Operational Challenges

The collections function is integral for monitoring client portfolio health by detecting early distress signals and minimizing non-performing assets (NPAs). This position demands proactive management of clients facing financial difficulties and those deliberately defaulting on their obligations. The collections model comprises in-house and agency-managed operations, with this role charged to coordinate and optimize both.

Key Responsibilities

• Meeting and exceeding collection targets and financial objectives for the designated area.
• Maintaining strict control over delinquency levels to minimize credit losses.
• Improving resolution ratios for overdue accounts.
• Ensuring sufficient and strategically distributed staffing across segments and locations.
• Reducing charge-offs and maximizing recoveries from charged-off accounts.
• Monitoring and controlling collection costs to improve budget efficiency.
• Regularly reviewing delinquent portfolios at the account level to apply necessary interventions.
• Monitoring portfolio accounts and flagging potential defaults or delays.
• Engaging defaulting customers to design effective recovery options.
• Developing management information systems (MIS) to analyze portfolio trends and performance for corrective measures.
• Providing regular insights on collection status, delinquency, risk profiles, fraud cases, and other relevant indicators to stakeholders.
• Coordinating with collection agencies for efficient recovery processes, overseeing agency selection, and ensuring their performance meets organizational standards.
• Maintaining compliance with internal policies and regulatory requirements, including handling audits and customer complaints related to collections.
• Collaborating with legal departments and senior leadership on escalated issues ensuring regulatory adherence.
• Leading, mentoring, and developing the collections team through functional and behavioral training supported by HR.
• Engaging in talent management and fostering an engaged and motivated team atmosphere.

Direct Reports

• Collections Officers: Handle delinquent accounts within locations by working with defaulters on recovery plans.
• Agency Collections Managers: Manage agency-driven collections ensuring compliance with policies and regulations.

Stakeholder Interactions

• Internal: Collaborate daily with Regional Collection Managers, Collection Officers, Agency Managers for strategic alignment and portfolio updates; Weekly engagements with Credit and Policy teams for case updates and policy changes; and as needed with Legal teams for escalations and complaints.
• External: Frequent communication with collections agencies and vendor partners for portfolio management and follow-ups; occasional interactions with customers regarding escalations.