Tackling the biggest challenge facing the insolvency industry
The debt and insolvency industry has a big problem.
There’s a black hole of data that’s limiting the sector’s ability to make effective decisions and do what’s right for the most vulnerable people in debt.
The issue is the lack of consistent, accurate and transferrable data between Insolvency Practitioners, Creditors and importantly those people or organisations needing help to pay back debts.
IVA and insolvency practitioner software helps manage cases and drive productivity but only scratches the surface of usable data. As a result organisations limit their ability to gain genuine insights and implement digital transformation resulting in lost revenues.
“Limitations on data capture and the lack of insight into each debtor means that there is no way of predicting behaviour and the future likelihood of defaulting.”
Much of the information about how a person becomes insolvent – their current finances, life circumstances, or what they are able to pay back – is lost in an avalanche of paperwork.
Creditors and insolvency firms are also sinking under the weight of compliance, as well as a growing backlog of cases, inefficient process, and the sheer volume of information.
Putting this into perspective: the typical person who becomes insolvent will have 16 lines of unsecured debt which their bank may be unaware of.
When a consumer reaches the point of insolvency and gives up all the information about their debt, the person administering the case has just eight minutes to lift the key details from a 70-page document. They are limited to only capturing the basic fields, giving a generic overview of the consumer.
If a consumer defaults, then everyone loses. Creditors don’t recover the debt owed, insolvency practitioners are unable to recover their fees and the consumer is left without a resolution to their debt.
This is where Cerebreon comes in.
Our platform starts by using advanced machine intelligence techniques and Optical Character Recognition to automatically transform unstructured digital and paper-based documents received from IPs and other stakeholders. Cerebreon’s proprietary technology validates, structures and conditions documents, irrespective of the format, for seamless integration into your CRM or database system.
Capturing hundreds of data points would normally take multiple man-hours – using Cerebreon, the process takes less than a minute whilst increasing accuracy, ensuring regulatory compliance and cutting operating expenses.
Using Cerebron’s Data Transfer and Management module, creditors and IPs can now transfer and manage industry data with full confidence in GDPR compliance as well as the highest levels of Cloud security with Cerebreon deployed on Microsoft Azure.
Right now, the nation is sitting on a £300bn unsecured debt mountain and it’s estimated that one in eight of us is just one paycheck away from being insolvent. That’s a terrifying thing to contemplate, especially around the Christmas period. Just that one day of spending can lead to six years of trying to get out of debt.
“All it takes is a drop in income of £100, and 8m people would find themselves needing credit to get to the end of the month.”
Many people across the UK face the threat of insolvency. Cerebreon was founded with one mission - to use data to reduce the number of defaults in insolvency arrangements, increasing recovery for creditors, insolvency firms to ensure the consumer becomes debt-free.
This is why we are working tirelessly to solve the data conundrum, and give power back to consumers and creditors, and reduce the burden on insolvency firms.
With Cerebreon’s predictive data analytics, all stakeholders in the debt recovery process gain insights into the consumer’s behaviour. This information empowers all parties to create a debt repayment plan that is sustainable. This gives the consumer the best chance of successfully clearing their debt and we have proven that our technology works.
By the end of 2019, we will have processed 15m documents through the platform. Cerebreon reduces the amount of manual processing required by 75%, and our results deliver 98% accuracy. We are effectively automating the debt industry from end to end.
We are aiming to reduce the failure rate for insolvencies by half in the UK. That has the potential to change many lives. It’s time to re-imagine the way the insolvency industry works, to help rebuild it with data and transparency at its heart.