Since 1977 John Schanck, Chairman of Stellar Recovery, has been in the debt recovery business and has seen just about every technological advance in the industry. From automated collection systems to auto-dialers to emailing, the application of technology has proliferated through the $14 billion a year industry. But it was only after reading an article about “big data” that he realized that the data that Stellar Recovery has collected over the years could be used to revolutionize his business.
“The article talked about how machine learning could identify patterns that were predictive in very large data sets,” said Schanck. “I realized that if there ever were patterns in a data set, that the recovery business would have it, and from there I knew we could complete virtual collections through automation.”
Stellar Recovery did not have to look far to find a company with the solution. NLP Logix, which is headquartered not only in the same city of Jacksonville, Florida but in the same business park located just south of the downtown, has been offering a suite of machine learning products and solutions for over four years.
“I had heard of NLP Logix and the solutions they were doing for a number of companies in the financial services sector, but not until I thought about how our own data could be used to develop a model to streamline our business, did I realize there was a great opportunity,” said Schanck.
The companies started working together in late 2014 and began to go down two tracks: one was to develop an advanced analytics program that could be used to keep every level of the organization informed of their
performance, and the other was to develop a predictive model that would more accurately predict which consumers had the highest probability of paying.
“It has been great working with the Stellar team,” said Thomas Furman, Software Engineer, NLP Logix. “We combined at least 12 different data sets along with data from the US Census and American Community Survey and built interactive dashboards using Tableau Software to deliver the analytics. We used the same data to run algorithms that have proven to be very accurate at predicting the probability a person will pay.”
The Stellar Recovery and NLP Logix team knew that in the end the most important part of the work is to actually put the information to work, which is often the most difficult part of any big data project. The analytics are delivered via the Tableau data visualization application and NLP Logix, using proprietary code from its machine learning tool kit called LogixStudio, was able to integrate the predictive model right into Stellar Recovery’s existing collection software and dialer system.
“The integration of the model is absolutely amazing,” said Kendra Stokes, Dialer Manager/Chief Security Officer, Stellar Recovery. “We have made a significant investment in our systems and it was a great relief to be able to have the results of the model built right into our existing system and work flow.”
Stellar Recovery estimates an annual $2-3 million revenue increase from agent productivity and savings by cutting costs realized through the analytics. Stellar Recovery has been able to replace its credit bureau vendors among other venders with the NLP Logix model at an annual savings of an additional $1 million. “The increase in recoveries and the reductions in costs are staggering,” Schanck said.
“I did not need a model to tell me if a person could pay, I needed one that would tell me who would pay. There is a big difference and the NLP Logix model has delivered that,” said Schanck.
About Stellar Recovery
Stellar Recovery, Inc. acquires and provides recovery services for charged off consumer and commercial debt as well as purchases directly from major issuers and creditors including national financial institutions and telecommunication companies. Stellar Recovery provides third party recovery services to debt purchasers and creditors. Our markets include communications, consumer loans, credit card, payday loans, repossessions, retail, property management, and utilities. Stellar Recovery’s experienced representatives and dedicated teams are focused and specialized in multiple verticals to provide increased liquidations and improve the bottom line to our clients and investors.
For additional information visit http://www.stellarrecoveryinc.com
About NLP Logix
NLP Logix is an advanced analytics and machine learning product and services company, which has grown from a vision in 2011 to one of the fastest growing teams of deep learning practitioners. NLP Logix delivers its solutions through LogixStudio, which is the company’s proprietary platform that gives a customer the ability to quickly leverage the growing library of algorithms and deploy them into their workflow.
For more information about NLP Logix visit http://www.nlplogix.com.