Our Analytics group has been tasked with building recovery models for our Credit & Collections department. I have tried researching the issues and pitfalls and I haven't been successful in finding anything specific to our task.
I am looking for helpful information on what kind of targets to use in modeling, modeling windows, performance windows, kinds of models used, etc.
I have heard of several different approaches like modeling for the optimal number of days to hold an account to maximize payment before sending it to an agency, or modeling for the highest net return, or even a two-stage model where you model on a binary target (pymt) and a continuous target (amount).
Without giving away company secrets, I am curious for any advice you can offer.
Thanks,
Andrew Christian
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