Bucket Migration

Bucket Migration Definition: Bucket Migration (or Roll Rate) refers to the percentage of delinquent accounts that move from one Days Past Due (DPD) bucket (e.g., 1-30 days) into the next, more severe bucket (e.g., 31-60 days) during a given month.

Why it matters in Debt Collection

• A key KPI for collection agencies: high migration rates mean the collection strategy is failing.
• By analyzing migration rates, AI models can predict future Gross NPAs accurately.
• The primary goal of early collections is to achieve 'negative migration' or 'roll-back' to current status.