The future of debt collection
Monday July 30, 2018
Technological advancements in debt collection have radically transformed the industry, with evolving debt collection regulations and the advent of the tech-savvy consumer making traditional methods of debt collection increasingly redundant. Whether you’re a small agency, a multinational corporation or a financial institution improving your account receivables management, the future of debt collection is digital, and it’s time to get on board.
As consumer debt rises, it’s more important than ever before to have effective debt collection. With technology, agencies can employ a customer-centric approach that utilizes multi-channel communication strategies to connect with consumers – in a way that empowers and motivates them to pay their debts instead of alienating them.
Whether millennials or baby boomers, consumers are choosing mobile technologies, which means finding yourself debt collection agencies that understand how to employ data-driven technology to contact your customers, the right time to contact them, and how to provide easy payment options that resonate with them. Responsive websites and payment portals, and mobile-friendly access to all their vendor accounts are just a few of the things customers expect to have served up digitally, today.
Consumers want to pay off their debt in a way and at a pace that is convenient for them, that allows them flexibility, and a better user experience. This means investing in technology that allows a personalized, consumer-focused approach, which leads to improved compliance. For example, an automated and data-driven system allows debt collection agencies to pre-approve every line of text before it’s sent out, and structure their communication according to consumer preferences. Rather than calling a consumer during their work day, we can provide a digital platform that allows the consumer to manage their debt online 24/7. The consumer is empowered to view their account balances, set up and manage payment plans and track their progress at the times that suit them – so they’re less likely to feel embarrassed or harassed. Whether text, email, or chat, communication is multi-channel. Consumers can also quickly alert an agency if they’ve been victims of fraud or have filed bankruptcy, saving debt collections agencies both time and money.
"SCORE understands that consumers wish to pay online, which is why we’ve partnered with TALKINGTECH to offer self-service and omni-channel bill payments. Combining data, analytics and technology allows us to provide a solution that encompasses web, text, and voice – so our clients can embrace the digital age of collections, reduce costs and improve customer engagement,” says Stephen Sheather, Principal at SCORE.
With financial institutions and debt collection agencies educating consumers about how to better manage and/or consolidate their debt, the world of debt collection is changing, offering opportunities for companies to communicate with debtors more effectively, creating improved consumer experiences that can lead to better recovery rates. Keeping this in mind, collection professionals should make it their priority to train their agents to use technology, and both track and improve customer satisfaction. Predictive analytics, workflow automation, and innovative payment products help determine account collectability and recovery strategies.
SCORE leverages technology to make the debt collection process more effective, and less costly. Our unique approach to collections uses bureau-based scores to build models that identify the customers most likely to cure or pay. This allows our clients to improve accounts receivable management returns through the optimization of our scoring, analytic and consulting solutions.
To learn more about how SCORE employs technology to maximize profitability in recoveries and collections, contact us today on (416) 861-1217 to make an appointment. We’d love to discuss how our advanced analytic models can help you achieve your goals.