Litigators are benefiting greatly from the rise of big data. It’s an industry-wide revolution which gives legal team’s greater efficiency in garnering case information and case decisioning, streamlined character profiling and determining the return on investment. As a result, it is now critical that every legal practitioner has in place a data-driven litigation strategy.
Debt Recovery and Legal Analytics
Pursuing litigation on debt recovery can be a costly exercise for businesses. Using data analytics, litigators are able to analyse caseloads to identify where the firms should allocate resources, while managing client expectations for cases which are less likely to succeed.
In debt recovery litigation, the use of data analytics allows firms to segment their client’s caseloads using data parsing technology to determine which cases are the priority. Best practice in debt collection litigation is to determine how likely the debtor is to pay back the outstanding debt. In order to determine likelihood, scoring individuals based on geographic risk indicator (GRI) proves to be best practice and automation technologies achieve results with minimal time and cost to the firm.
GRI is determined using several features of an individual, such as:
- Rate of delinquency
- Suburb (socioeconomic status)
- Assets ownership
The rise of big data means litigators have more insights than ever and better yet, precise insights.
Ensuring Quality Data Sources and the Disadvantage of Dirty Data
Data is ubiquitous and in a constant state of flux, as a result, the need for clean and up-to-date data is crucial. Just as data is an invaluable companion to litigation strategies, out-dated and/or incomplete data is incredibly detrimental.
Not all data is imperative for legal cases, so for any litigation strategy it is important to identify the key requirements such as GRI information, insights regarding judge/magistrate rulings, and assessing the opposition’s capability; therefore mitigating much of the risk of losing a case.
The solution: data washing via reputable data and analytics registries. Most firms don’t have the available time and resources to continually update and monitor databases, so, optimising the availability of a third party is an ideal tactic to remaining competitive. illion is one of Australia and New Zealand’s top data and analytics companies and the only one with dedicated receivables optimisation capabilities and the corresponding data repositories to aid in debt recovery, which makes them an invaluable source of data throughout the entire credit lifecycle.
AI and Machine Learning: the Next Frontier
While still in its infancy, the advent of AI technologies and machine learning is considered to be the future of data-driven litigation strategies.
The expectation of machine learning and ‘smart’ decision making by computerised programs is that they will be able to predict likely outcomes and eliminate much of the speculation that litigators currently have to employ to reach predicted outcomes. Applying these technologies to debt recovery, collection and litigation could exponentially increase a firm’s efficiency both in man hours and minimising client’s billable hours, making any firm utilising these technologies not only competitive but insight leaders for the greater industry.
Commercial Litigation & Insolvency Lawyers assists clients with developing sound data driven litigation strategies to ensure the best outcome for clients every time.
For a free consultation on your debt, and find out how we can work with you to achieve the best results for your business, contact us today!