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Case studies

CGI helps Navy Federal Credit Union maximize the effectiveness of collections treatments and resource utilization

“At Navy Federal, we are taking strategic steps to ensure our collections operations improve and adapt with current market conditions. CGI’s expertise in the credit  industry combined with their technology solutions made them the right partner to help us achieve our strategic goals.”

Dave Tillery, Senior Vice, President of Consumer/Credit Card Lending, Navy Federal

Navy Federal Credit Union (NFCU) is the world's largest credit union with $39 billion in assets, 3.2 million members, 176 branch offices, and 7,100 employees worldwide. The credit union serves all Department of Defense military and civilian personnel and their families.

The Challenge
Navy Federal faced productivity opportunities related to a fast growing portfolio of consumer and credit card loans. Additionally, they were experiencing rising delinquencies and charge-offs resulting from the tightened credit market. The credit union wanted a collections solution that incorporated customer information, risk-based segmentation and automated treatments in order to prioritize work based on risk level and in turn, maximize the effectiveness of collections treatments and resource utilization.

How CGI Helped
CGI helped Navy Federal transition from traditional age-based collections to sophisticated risk-based collections by combining CGI’s industry-leading CACS® collections solution with its advanced decision management tool, Strata® Enterprise. CGI also provided business process consulting and change management services, resulting in the complete re-engineering of the collections department, positioning the organization for future transformation and growth.

The Results
By transforming its collections approach, Navy Federal has become a more cohesive, strategic and analytically driven organization. The credit union has a new methodology for testing collection strategies, evaluating performance and making improvements. The result is enhanced agent productivity and collections effectiveness. Specific results include:

  • Collector productivity improved by 20-25%
  • Credit card charge off rates relative to the industry improved about 30 base points

For more information, visit CGI online at www.cgi.com/en/banking.