Machines, robots, and artificial intelligence (AI) are more capable than ever before and are already changing the world, businesses, and our way of life. Automated systems for processing and analyzing data, as well as predictive models for future development, are becoming increasingly accurate and precise. Just consider what happened on leading stock exchanges a few days ago when the Chinese AI platform DeepSeek caused a crash in the shares of major tech giants. AI is also entering the debt management and collection sector on a global level.
In a recent Industry Pulse survey by consultants from American company Bridgeforce, local market experts noted four new trends that will have key significance for the sector in the US, and around the world, starting this year.
AI and automation
Not a surprise, everyone agrees that the influence of AI is the strongest and most tangible new trend. AI and intelligent systems, reminiscent of human thinking and analysis capabilities, are already widely used by debt collection companies. This trend will deepen in the current year, and according to analysts, those who avoid it will seriously lag behind. AI has broad applications in the sector – from managing and analyzing real-time data at extremely high speed to chatbots. AI, automated, and robotic systems replace humans for heavy or routine tasks, freeing up human resources for other activities. Moreover, they can be relied upon.
Nearly 40% of participants in the Industry Pulse survey view AI as an instrument with significant potential and opportunities that will be crucial for the future development of the sector. At the same time, artificial intelligence remains the least understood and most challenging area. With the potential to transform the industry and a clear need for training on its current and future capabilities, successful companies will be those equipped with an adequate “handbook” to navigate them through AI changes, point out the analysts from Bridgeforce.
Data Analysis and Predictive Models
Software for data processing and analysis, as well as predictive modeling, is the next significant relatively new trend that will determine the success of businesses in this sector, according to the survey. This opinion is shared by 28% of experts in the field in the US. These technologies are critical in the process of making strategic decisions.
Digitalization of Debt Collection
The management of the debt collection process is practically already digitized – from online self-service platforms for settling debts, preparing reports and certificates, to submitting applications, everything is now fully available digitally and remotely. All these innovations completely change the practices for debt collection. Around 22% of debt management specialists in the US believe that they will continue to evolve and improve.
Technological advancements in the financial sector are increasing payment channels for settling debts. If previously everything went through classic bank accounts and payment orders, now with numerous platforms, virtual wallets, and constant upgrades of functions, companies become more flexible when it comes to debt repayment.
Regulatory Changes
The debt management and collection sector is becoming increasingly regulated in the US (and in Europe), and regulatory changes will be even more central to the attention of debt collection firms. This will require vigilance, adaptability, and readiness for constant change, according to 11% of experts.
However, the new trends also come with their challenges – lower engagement and loyalty from clients, warn the analysts. It is much easier to break contact with an automated system for debt repayment compared to a real person representing the debt collection company. Therefore, human contact remains crucial in communication with both creditors and debtors, and the individual approach, which is still mostly possible through human interaction, will continue to have an impact. This is explicitly emphasized by the experts. Numerous studies show that debtors indeed prefer online communication, mainly through chatbots, but when it comes to negotiating and choosing a repayment plan, human contact becomes more important.
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