Longan Group: Enhancing Legal Collection in Vietnam

Situation at the Start of the Project

Longan Group is one of the leading debt management firms in Asia. It specializes in servicing unsecured debt portfolios of consumer loans, purchased from banking and financial institutions. Longan primarily purchases these loans at a discount, as it offers its advanced collection expertise, offering banks and local players to offload their balance sheet liabilities, enabling a more stable and healthier lending market. 

Focusing the scope of this project on the Vietnamese market, Longan employs several collection methods. Primarily with soft collections, Longan is also a pioneer in legal collection in Vietnam. Legal collection is a tool, enabling older portfolios to be collected, despite larger days-past-due (DPD) contracts. 

Initially, Longan Group managed its Legal collection processes manually, exporting data from the CRM system. This approach limited business efficiency and slowed down operations. Before scaling, the company required specialized software to minimize operational risks and improve collection efficiency.

Additionally, Vietnam lacked an established electronic communication system, making legal collection even more challenging. As a result, Longan Group sought a suitable software solution.

Task

The client analyzed several systems on the market and identified the key selection criteria:

• The vendor’s expertise in implementing large-scale processes.
• The ability to deploy the application without significant modifications.
• A flexible platform that could be adapted to Vietnam’s legal collection requirements.

After evaluating various options, Longan Group selected RunRule Solutions as the most technologically advanced developer.

The country manager of Longan Group set the goal of launching a pilot Debt Collection solution within two months to automate the legal collection process. The project aimed to confirm:

• The speed of case processing.
• The quality of task execution.
• The solution’s scalability.

Based on the implemented system, Longan Group would determine the budget for further business development and the transition to new software.

Solution

The RunRule Solutions team proposed an out-of-the-box Debt Collection solution based on the 2RS Platform. The key reasons for selecting this developer were:

• The company’s strong market reputation and relevant expertise.
• Proven experience in managing large-scale processes (e.g., processing 10,000 documents simultaneously, assigning statuses to 1,000 clients at once).
• No need for additional modifications from either the client or the vendor.
• Flexible process customization without code changes.

A total of five people participated in the project. From Longan Group: a business analyst, a data analyst, and the head of legal collection. From RunRule Solutions: a project manager and a business analyst.

The vendor implemented the following improvements:

• Adaptation of the data import mechanism and contract classification.
• Customization of interfaces based on business specifics.
• Localization of the user interface.
• Development of document templates according to client requirements.
• Implementation of a batch document printing mechanism.

Project Results

The project was completed on time — within 2 months. During the pilot launch:

• 600 client cases were successfully processed.
• The risk of human errors and financial losses was reduced.
• The debt collection portfolio was expanded.
• The system was adapted to local requirements.

Automating legal collection was a complex task, as it involved a significant amount of manual work, including court visits, document submissions, and deadline monitoring. While full automation was not feasible, the system significantly streamlined key processes.

The client highly appreciated the delivered product and the RunRule Solutions team, acknowledging their efficient work on the technical requirements, the speed, and quality of the implementation. The client also explored the 2RS Platform and began making necessary adjustments independently. Moreover, during the collaboration, Longan Group’s analyst mastered the platform’s tools and is now capable of handling tasks without additional support.

Longan Group plans to:

• Scale the solution to process thousands of cases every month
• Accelerate the collection process by 20% and increase recovery rates.
• Expand the application’s use to other Asian markets.
• Maintain the system independently by transferring expertise in-house.

Thus, the implementation of the Debt Collection solution not only aided in the partial automation of legal collection for Longan Group but also laid the foundation for more efficient business operation.