Case Study: a North America-based student lender achieves 80% self-cure and 21% fewer charge-offs with Skit.ai

North America-Based Student Lender reduces charge-offs by 21% with Skit

A North America-based student lender, a fintech providing credit cards to international students, faced challenges with its collections operation. The company's ten human collectors were spread too thin across all delinquency stages, leading to rising charge-offs. The core issue was that the student borrowers, due to their unique financial circumstances and communication preferences, were not responding to traditional phone calls. Skit.ai was engaged to address this problem using its AI debt collection platform.

Skit.ai implemented an AI-first solution that fully automated collections for accounts 0 to 60 days past due (DPD). The platform used an SMS-first communication strategy, timed to students' cash flow, to facilitate self-cure. This allowed the lender's entire human team to be redeployed to more complex, later-stage accounts. As a result, Skit.ai helped the lender achieve an 80% self-cure rate on early-stage accounts, reduce charge-offs by 21%, and cut costs by eliminating five full-time equivalent (FTE) positions.