Problem Statement

The bank struggles with overdue loans where customers fail to make timely payments. Agents handle these accounts through workflows like settlement, legal, or bankruptcy.

In the settlement workflow, agents negotiate with customers to recover part of the outstanding balance by a set date. The current challenge is to build a digital negotiation module that enables structured offers, tracks history, enforces compliance, and maximizes recovery rate.

Assumptions

• Only agents initiate offers; customers cannot self-initiate settlement proposals.
• One active offer per account is allowed at any given time.
• Bank has policy-driven thresholds for minimum and maximum settlement % (e.g., 50–90% of outstanding balance).
• Customers are notified via digital channels (SMS/email/portal).
• Offers may require manager approval if outside standard thresholds.
• Payments are tracked in real time (integration with the core loan system).
• Negotiation history is stored for compliance audits.

Hypothesis

If agents have a structured tool to negotiate settlement offers with customers (guided by business rules and real-time data), then:

• Recovery rates will increase.
• Negotiation cycles will shorten.
• Compliance and transparency will improve.

Guesstimate Approach

• Total overdue loan accounts = 1M.
• % eligible for settlement workflow = 30% → 300K accounts.
• If 50% receive offers, that’s 150K offers/year.