PRINCIPA DECISION TECHNOLOGY IN COLLECTIONS AND THE HUMAN MACHINE INTERFACE

Jaco Rossouw Chief Executive Officer

PRINCIPA WHAT I THINK ABOUT WHEN I THINK ABOUT COLLECTIONS

Jaco Rossouw Chief Executive Officer

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Google’s image recognition API: pretty good…

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

We are a leading South African data

analytics product and consulting

company, and a member of the

Transaction Capital group of

companies.

Who are we

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

How we do it

We convert data to wisdom so our customers can work wonders.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

• 3 stories

• What to do with all the data?

• Why Decision tech and why now?

• Human tech

• Mind the Gap

• Circling back

Agenda

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

What to do with all the data?

From data to wisdom… executed

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Data to Knowledge Continuum

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Data

Facts with no context

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Information

Add context to the data Facts become meaningful

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Knowledge

Identify a pattern or trend

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Wisdom

The application of knowledge

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Execution

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• Knowing • Doing • Tracking

Why Decision Technology and why now?

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

A changed paradigm

Influenced by data… • Moving data • Systems driven • Capability silo’s

Defined by data… • Navigating data • Data driven • Integrated approach

Data analytics

Strategy

Software

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

4 types of Data Analytics

Prescriptive

Predictive

Diagnostic

Descriptive

Value

Complexity

What is the data telling you?

Prescriptive: What do I need to do?

• Recommended actions and strategies based on champion / challenger testing strategy outcomes

• Applying advanced analytical techniques to make specific recommendations

Predictive: What’s likely to happen?

• Business strategies have remained fairly consistent over time • Historical patterns being used to predict specific outcomes

using algorithms • Decisions are automated using algorithms and technology

Descriptive: What’s happening in my business?

• Comprehensive, accurate and live data • Effective visualisation

Diagnostic: Why is it happening?

• Ability to drill down to the root-cause • Ability to isolate all confounding information

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Collections Industry trajectory

Past

Cradle-to-grave

Manual Processes

Large Contact Centres

Dashboards

Manual Dialling & Letter Capability

Present

Analytics

Data Driven Strategies

Automated Processes

Live MI Dashboards

Automated Diallers and communication

(sms, email)

Future

Predictive Analytics

Customer Service Enhancements

Agent Satisfaction

Pro-Active Compliance

Self-Service

Quality Control

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Why Decision technology / Business Rules Management?

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Common Decision metaphors

Aggregation

Calculations

Scorecards

Matrices

Clusters Tables

Rule flow Decision Trees

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

• Scoring – propensity to pay or roll, payment projection

• Segmentation and specific action sets per scenario

• Right time to call

• Recommended PTP amount

• Settlement optimisation with recommended settlement amount

• Valuation

• Placement optimisation

• Agent matching

• Sentiment analysis, automated QC

• Yield prediction

Opportunities in Collections and Recoveries

Human technology

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

In 2016, Google’s AlphaGo program beat Lee Sodol in Go (10761 possible games)

Google vs. Lee

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

DeepMind used 1920 CPUs + 280 GPUs (1MW)

A fair match?

Lee used a 20W well-trained muscle

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Fast facts regarding visual processing

• 13 milliseconds for your brain to process a single image • Spatial vision, context, rapid perception, emotion, attention,

memory and neural mechanisms all contribute to our incredible ‘scene vision’

• Your brain processes images thousands of times faster than it does text

• 90% of the information sent to the brain is visual

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Visual processing super machine

Your most powerful deep learning asset…

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Mind the GAP and some other stories

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

• Machine and agent

• Agent and customer

• Customer and machine

Mind the Gap between…

Conclusion

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

• Explore the possibilities within your data

• Deploy using appropriate decision tech

• Think augmented intelligence and maximise the value of your most powerful asset

THANK YOU! Questions?

Jaco Rossouw Chief Executive Officer

Work Wonders. © 2018 Principa Decisions (Pty) Ltd.

Visit www.principa.co.za before the matches to view our predictions, where we’ll also be tracking against final match scores.