Area Collection Manager - Unsecured Flows

Job Objective

The role is focused on overseeing the collections operations within a designated area, often a metro or state capital or several smaller cities. The manager collaborates with delinquent borrowers to devise effective recovery strategies and supervises both internal and external collection teams to ensure adherence to company policies and regulations.

Scope and Key Parameters

• Team size ranges from 4 to 9 members depending on location.
• Responsible for meeting Expected Credit Loss (ECL) targets for various stages and products, directly influencing profitability.
• Maintain collection costs below budget at the state level.
• Recruit, develop, and lead a high-performing collection team for the assigned area.

Organizational Context

Aditya Birla Finance Limited (ABFL) is a prominent NBFC under Aditya Birla Capital with pan-India presence and an extensive lending portfolio spanning diverse secured and unsecured loan products for retail, MSMEs, corporates, and HNIs. The collections division plays a crucial role in monitoring accounts, identifying stress signals early, and minimizing non-performing assets effectively.

Job Challenges and Responsibilities

• Maximize business profitability by efficient management of non-performing loans within the area.
• Oversee field collections, managing both in-house teams for loans above ₹10 lakh and agency-driven collections for smaller loans.
• Achievement of collection targets and financial objectives for the region.
• Mitigate delinquency and credit losses within the portfolio.
• Improve resolution rates and minimize charge-offs while maximizing recoveries from charged-off accounts.
• Control collection expenses and ensure budget efficiency.
• Conduct daily portfolio monitoring and reviews to make account-specific decisions.
• Develop and implement MIS reports to analyze portfolio trends and facilitate corrective measures.
• Communicate timely updates to management and other stakeholders about collection performance, delinquency trends, negative profiles, fraud cases, and more.
• Manage relationships and performance of external collection agencies, including oversight of selection, continuous monitoring, and controlling agency operations.
• Ensure compliance with documentation standards, internal policies, and regulatory requirements.
• Address and resolve customer complaints related to collections efficiently, ensuring satisfaction for both the company and customers.
• Coordinate legal actions and senior management interventions for escalated cases, maintaining strict regulatory compliance.
• Provide coaching, mentoring, and training support to team members; participate in talent development and engagement to sustain a motivated workforce.

Key Relationships

• Internal: Frequent collaboration with Regional Collections Manager, Collection Officers, Agency Managers, Credit and Policy teams, and Legal department for updates, escalations, and coordination.
• External: Regular interaction with collection agencies, vendors, and customers for portfolio reviews, case follow-ups, and resolution discussions.

Direct Reports' Roles

• Collections Officer: Manages collection activities for assigned delinquent accounts within the location, engaging with defaulters to formulate recovery plans.
• Agency Collections Manager: Oversees collection processes for delinquent accounts, ensuring agency adherence to policies and regulatory compliance.