Context
The project focused on recovering loans issued to small and medium-sized businesses before the COVID-19 pandemic. After a year-long pause on repayments, the bank initiated a structured recovery plan with the dual goal of retrieving the outstanding amounts while also supporting businesses by slightly reducing the effective interest rates from the original issue terms. The project was delivered over a period of three to four months.
Details
Time Frame:
Role:
Involvement:
Web Interface, Prototyping
Challenge
Many Small and medium scale business continued to face financial strain in the post-COVID recovery period, which created the risk of defaults and prolonged delays in repayment. The challenge lay in designing a recovery approach that protected the bank’s financial interests without putting excessive pressure on these businesses. Additionally, coordinating negotiations, updating repayment terms, and ensuring compliance with internal policies required careful planning and close engagement with multiple stakeholders.
Solution
Conducted a comprehensive portfolio review to identify borrowers most likely to respond positively to a revised repayment plan.
Designed tailored repayment schedules that offered slightly reduced interest rates, helping SMEs manage cash flow while ensuring steady recovery for the bank.
Worked closely with UK stakeholders and collections teams to communicate the new terms transparently and build trust with borrowers.
Streamlined internal processes for approval and documentation, shortening turnaround times and keeping the project within the planned three- to four-month window.
Results
Successfully recovered a significant portion of outstanding loans from the targeted small and medium scale bussiness segment, reducing the bank’s non-performing asset exposure.
Reduced the effective interest rates slightly below the original issue price, helping SMEs resume repayments while preserving customer relationships.
Completed the project within the planned timeframe, ensuring minimal disruption to other credit operations.
Strengthened the bank’s reputation for balanced and client-focused recovery strategies, supporting long-term client retention.