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Collections business unit. Its most
powerful feature is an electronic workflow
function that will allow for the automation
of the majority of the processes within
the collections environment. The package
has various other features such as
automatic document generation as
well as CRM (Client Relationship
Management) capability and will be fully
integrated with the bank’s predictive
dialer, SMS, fax as well as the bank’s
core banking system. The increase
in efficiencies achieved through this
investment will result in cash collection
improvements and reduced costs.
The call centre software upgrade
includes the acquisition of additional
predictive dialer seats, the acquisition
of a world-class PABX together with its
customised call centre management
system. The automation of the inbound
call centre workflows is also in the
process of being revamped.
Collection efforts during the year have
been rewarded through steadily
improving cash collection rates in all
environments as collection processes
have matured. The collection in respect
of the loans acquired from Saambou also
performed according to expectation
during the year. The challenge remaining
within the division is to discover ways in
which to unlock the cash owed by clients
who continue to default despite all
recovery efforts, both in the active book
and the written off book. To this end
specific research has been
commissioned, the outcome of which
may result in collection strategy changes.
The Collections business unit permanent
staff complement has remained stable
over the past year (2002: 490 posts and
494 as at 30 September 2003) with some
natural attrition amongst the ex-
Saambou staff and some increases in
the African Bank staff complement,
particularly in the Legal division as the
number of loans flowing through has
increased the base of loans under
management in this division.
Operational highlights for
the year
Total cash collected for the year by
African Bank (including Saambou) of
R4 080 billion.
Total NPLs reduced from
R2,76 billion in September 2002 to
R2,34 billion in September 2003.
Provision coverage remained
conservative at 74,1% compared to
the prior year’s coverage of 79,2%.
Bad debts written off for the year
amounted to R741,5 million which
amounts to a write-off of 13,0% for the
year based on the closing gross book
balance as at 30 September 2003.
Bad debts recovered are showing a
steady increase although this is to
be expected given the aggressive
write-offs which have been
processed during the year. The
monthly gross cash collected
through bad debts recovered
increased from R1,5 million in
October 2002 to R5,3 million for
the month of September 2003,
totalling R74,5 million for the year.
The year ahead
During the year ahead the primary focus
will be on:
Finalising the integration process;
Improving the employment equity
profile of the Collections business
unit;
Continuously improving cash
collected, with special focus on
rehabilitation of overextended clients;
Reduction of costs, primarily through
the integration of the Saambou and
African Bank books and through
efficiency gained through the
automation of processes;
Maximising the return on investment
in the various software packages
acquired during 2002/3;
Achieving exceptional collection
rates and client service levels
through the bank’s unified inbound
and outbound call centre, and;
Increasing the capacity and focus of
collections in the Collections
business unit’s regional offices.
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African Bank Investments Limited