Industry: Specialty Auto Finance | Delivery Location: Nearshore (Caribbean) | Primary KPI: Delinquency Rate
Speed to Success
Rapidly Reducing Delinquency Rate
The Challenge
A U.S.-based specialty auto finance company engaged KM² Solutions to stabilize its outsourced collections operation after multiple unsuccessful BPO partnerships. Portfolio performance had drifted materially above target.
The mandate was clear. Reduce and maintain delinquency at or below 14.5 percent within a 120-day stabilization window. There were no secondary KPIs. Performance would be measured by a single outcome.
The Solution
KM² approached the engagement with one objective: regain portfolio control through disciplined collections execution. Although measured against a single KPI, the program was managed internally as a comprehensive collections operation.
Leadership, Training & Compliance:
Client Services established consistent communication and leadership alignment. Formal skills training, structured calibration, and internal QA auditing strengthened accountability and reinforced regulatory discipline.
Dialer & Contact Optimization:
Accounts were prioritized to prevent rollover, with stronger collectors aligned earlier in the day. KM² deployed a compliance-approved SMS channel to support follow-up after unanswered calls and targeted outbound campaigns, expanding contact coverage and strengthening early-stage control.
Performance Visibility:
KM² developed a structured tracking and reporting framework to monitor bucket movement and roll rates, providing real-time insight into portfolio performance and enabling proactive delinquency control.
The Results
At go-live in December, delinquency stood at 23.6 percent against a 14.5 percent target.
Within two months, delinquency improved to 13.80 percent, a 9.8-point reduction, moving the portfolio below target and restoring controlled performance within the stabilization window.
Why It Matters
Collections performance is not improved by activity alone. It requires leadership discipline, lifecycle expertise, and real-time visibility working in alignment.
This engagement demonstrates the ability to correct material variance, operate beyond a single contracted KPI, and deliver measurable improvement within a defined timeframe.
For lenders facing sustained delinquency pressure, early-stage containment is strategic. Disciplined execution remains the differentiator.
About KM² Solutions
KM² Solutions is an award-winning BPO with over two decades of experience operating an exclusively nearshore strategy throughout the Caribbean and Latin America. The company provides clients with a host of outsourcing solutions, including customer care, receivables management, technical support, sales & marketing, data analytics, and back-office processing. KM² Solutions maintains PCI DSS compliance, completes an annual SOC 2 audit, and has a Compliance Management System that aligns with the FDIC.
