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Connected Data

Making debt collection sexy

19 Jun

Product

If you have ever forgotten to pay a bill or missed a loan payment, you have likely faced the plight of debt collection companies. The rapid rise in consumer debt has raised questions about their methods. The inefficient practice of incessant calling becomes unsustainable as the volume of smaller files skyrockets.

Most of the time people in debt arrears are not bad people - only a small proportion intend not to pay it back. Often they have just missed a payment or are financially stretched, yet debt companies treat them all with the same playbook.

Connected Data leverages predictive analytics to provide a tailored and effective debt management process.

Contact - Identify the most suitable channel and time to reach the customer

Segmentation - Understand the individual’s circumstances to influence the debt repayment strategy

Founders

Kirk Fletcher, CEO - Previously UK country manager at TDX Group and MD at Experian

Early Team

Anthony Summer, Director of Data & Analytics - Previously MD of Analytics at Experian

Paul Verner, Director of Sales & Marketing - Previously COO at TDX Group and CEO at Indesser

Antony Dear, Director of Platform & Delivery - Previously Director at Equifax and Director at TDX Group

Spotlight Analysis

Strengths

  • Substantial value-add: analytical debt collection processes have been shown to decrease write-offs by up to 25%

  • Unique wedge: can cross-sell a range of additional financial services to debtors and, as businesses pay Connected Data a share of recouped debt, it benefits from negative CAC on consumers

  • Macro outlook: the recent high consumer debt default rate provides a healthy pipeline of customers

  • Industry native: with 75+ years of industry-specific experience, the team is incredibly qualified

Weaknesses

  • Data quality: predictive analytics are constrained by the quality of data inputs; other players have spent more years in the industry fine-tuning their models

  • Regulation: changing laws around debt collection can hinder product development of automated outreach algorithms

Market

TrueAccord - Raised $49m Series C from Paypal Ventures and others in June 2022

Ophelos - Raised £5m Series A from AlbionVC, Connect Ventures and others in June 2022

DebtStream - Raised £1m Seed from Ascension, Fin Capital and others in January 2022

Why Connected Data?

With more than seven decades of industry experience, they are best placed to acquire high-ticket enterprise customers and benefit from favourable unit economics.

Key Details

Year founded: 2020

Summary: Connected Data leverages predictive analytics to provide a tailored and effective debt management process.

Investors: East Midlands Business Angels

Raised to date: £589,535 in October 2021

Currently raising?: Likely raising soon

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