Indonesia is one of the highest underbanked market in Southeast Asia. The lower socio-economic bracket neither have bank accounts nor do they have organised saving and emergency funds systems in

The restructuring and moratorium allowed by RBI helped the banks in maintaining their asset quality. As per a Crisil Research report, had it not been allowed, non-performing assets would have touched a two-decade high of 11.5% by the end of this year.

If collectors implement aggressive strategies, the resulting uproar might birth stringent legislation that hamper the region's debt collection industry's efficiency and revenue. Lenders need to adopt technology-based strategies that make them agile enough to navigate the current tricky landscape.

In a nut shell, debt collection starts first at a creditor’s level. Once the creditor is unable to collect the same and accounts become delinquent, a special emphasis on collection should be carried out.

The Asian market for distressed loans is young and fragmented but has huge potential to grow given the huge amount of existing and expected NPLs. The process of balance sheet optimization to conserve capital banks is a solution for banks to maintain healthy working capital ratios.

Indonesia's economy could grow by 2.5% in 2020. However, this growth is dependent on the nature of the pandemic for the second half of the year. With exports and daily economic activities stalled, the road to recovery from this pandemic will be a challenging one.

Vietnam has done a great job in handling the COVID-19 pandemic, but the economy has not been spared from the global recession. Consequently, loan delinquencies are surging. What is the way forward for lenders then?

To maintain financial prudence and a sound banking system with moderate bad debt levels, financial institutions will need to figure out efficient risk management. Traditional solutions have not helped much in resolving the debt problems. Thus, is debt sale the answer to the rising loan bubble?

This whitepaper examines the challenges that define debt recovery during economic crisis, solutions lenders can adopt to evolve their collection process. From new technologies and approaches to better segmentation and contact strategies, we address the unique issues collection teams are facing.

After 3 to 6 months of debt moratorium, banks’ balance sheets will be stretched. There will be a surge in debt collection activities. Hence, it will get challenging for banks if the outbreak persists. Credit markets may continue to dampen despite stimulus.