Target UK Transforms Arrears Management with Agentic AI | Tech Mahindra

Overview

Delinquency collections traditionally rely on human advisors to review cases, navigate systems, ensure compliance, and make subjective judgments. While SOPs exist, each case requires customized action for a personalized engagement—making the function time-intensive, inconsistent, and risk-prone. We worked with Target, a Tech Mahindra FCA regulated entity, that supports global lending clients, to modernize their arrears management.

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Client Challenges

While Target’s advisors need to review cases, interpret policies, validate data across 22 legacy systems, and apply rules, there were certain bottlenecks:

  • High Manual Effort: 25–40 minutes per case
  • Cognitive Load: Advisors track prior solutions manually
  • Limited Scalability: Person-dependent processes
  • Fragmented Tech Landscape: Multiple platforms, minimal automation

Our Approach and Solution

Collections Guru: An Agentic AI Solution

Tech Mahindra deployed an AI Agent trained on manuals and historic data, integrated into workflows for instant, accurate support. The solution offers agentic case review, applying rules autonomously and providing decision recommendations. It includes real-time advisor-assist, delivering immediate guidance for faster, more confident decisions. Through workflow integration, it retrieves inputs across systems to reduce unnecessary clicks. Its compliance-first design ensures adherence to FCA standards with full traceability. With deep legacy integration, it works seamlessly without requiring major platform overhauls. Finally, it is human-centric, reducing stress and enhancing usability throughout the process.

Business and Community Impact

Operational Efficiency

  • 25–30% AHT reduction
  • 40% less effort per case
  • 40% fewer navigations
  • Significant FTE repurposing

Quality and Compliance

  • Accuracy up to 70%
  • Uniform rule application
  • Consistent, compliant outcomes

Advisor Experience

  • High adoption in 30 days
  • Lower cognitive load
  • Increased confidence
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Reshaping Legacy Systems with Agentic AI

Target UK's transformation demonstrates the tangible value of Agentic AI in regulated financial services operations. The initiative delivered clear outcomes in efficiency, compliance, and advisor experience—while setting up a future-ready operating model.

Tech Mahindra’s solution proves that advanced AI can meaningfully reshape operations even in legacy-heavy, compliance-driven environments. The success of this pilot and early-phase rollout provides a strong foundation for multi-client scaling and broader enterprise adoption.

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