RNN Group aims to transform the entire field of debt collection and loss mitigation, starting by simply providing more accurate data on debtors.
Established in 2012 by Jim Van Schaik, a former executive of the largest data providers in the U.S., RNN Group provides an accurate digital data procurement platform to reduce charge off debt and increase recovery on charge off accounts. This enables Fortune 500 and Fortune 1000 financial institutions that provide credit in the form of credit cards, loans, mortgages, and federal executive loans to reduce brand risk, increase higher yielding recovery, better protect their customers’ personally identifiable information (PII), and reduce overall bad debt, leading to retention of a higher percentage of their customer base.
The major issue credit providers face is that each year, they must charge off about 1-10 percent of the loans they issue, as the IRS requires if they haven’t received payment within 120-180 days. In such a situation, as lenders pay law firms to obtain judgments against debtors, they generally lack accurate, verified data on the borrowers. As a result, upwards of 80% of their investment in legal cases is lost, along with 80% of their brand value. They also face risks that customer PII security will be compromised, that there will be litigation payouts, and that future revenues will be jeopardized. In short, the lender and the borrower risk everything, creating a lose-lose situation. Moreover, traditional manual debt-recovery methods result in lenders charging off billions of dollars per year. In 2018, banks alone charged off more than $65 billion, and the federal government is struggling with all-time record high levels of student debt, which now amounts to trillions of dollars.
To solve these problems, RNN has combined digital technology and data science to offer a sophisticated and technologically advanced approach towards identifying and delivering verified and accurate asset data sets, which can drive compliance and liquidation. To get the best data, the company strategically partners with all known data sources, including the credit bureaus. The result is a centralized procurement model using an accurate multi-tenant digital data procurement model and monitoring platform based in the cloud that can be customized according to customer need.
“We have spent the last six years figuring out how to build a digital data science machine that can convert inaccurate data to actionable data at a profitable pricing point,” says Donna Weaver, President, RNN Group.
RNN’s system now stands as a first-of-its-kind multi-product, multi-pricing platform. Designed to provide centralized security for PII, the model offers P&L impact as well. This provides control, consistency and visibility across the internal and external collection and legal networks, enabling users to manage a centralized portfolio and eliminate inactive or dormant accounts. The platform also provides a new digital solution for managing charge off debt in the future, helping lenders and the federal government reduce overall bad debt and improve their relationship with their customers.
The benefits for lenders are manifold. RNN’s one-stop customizable solution helps lenders scale their loss recovery efforts to reduce overall charge off debt, improve their relationship with their customers to protect long-term revenue, and significantly scale their overall recovery and loss mitigation success. The RNN platform has helped users increase their customer retention by an average of 23 percent and improve the overall charge off recovery rate by upwards of 20-40 percent.
Consumers benefit as well from RNN’s platform, which can help them avoid the entire process of going through collections. This has become a win-win solution for lenders and their customers, as it not only exempts consumers from charge ups or their debts being sent to collections; it also helps financial institutions maintain their image as they develop a long-term, healthy relationship with their clients.
RNN is listed on the 2017, 2018 and 2019 Inc. 5000 List of the Fastest Growing Private Companies in America and is now working towards building a next-generation non-collection recovery platform to bridge the gap between lenders and collection bureaus.