Collection strategy implementation : Case of Prudential Vietnam finance company

Abstract

To the situation that today there are more and more financial companies and banks provide lending services with low interest rates, Prudential Vietnam Finance Company (PruFC) has to face with the competitive condition in this kind of industry. It also faces with the state of bad debt and cannot get back money from lending accounts. The debt collection strategies develop before develop a debt collection problem are very important. As an intern in Credit and Risk Department at PruFC in nearly three months, I have a chance to know about the methods that MIS team do to analyze delinquent rates. It helps me do the research about PruFC‘s collection strategy implementation. The research focus on illustrate and describe the debt collection strategy in PruFC to collect payment each month, the ways they do and deal with the cases. This research has evaluated the implementation of collection base on the delinquent rates. PruFC had a good performance about collection in some last months of year 2008 but it is unstable in the beginning of year 2009. In overall, the collection agency did collect well and reduce the bad debt rate to 0.76% (in Feb 2009). My research also gives solutions to deal with main problems about collection and give some recommendation for implementing better collection strategy.