Digital transformation: Non-human collectors

At a time when everyone is talking about customer care and a human factor in digital communication, it may be surprising that there are also areas where the rule “less human – the better” tends to be more effective. Receiving letter after letter and discussing with a stranger the unpleasant situation of having overdue loans does not bring satisfaction to either party.

According to an Experian study, 32% of debtors prefer to generate and negotiate their debt repayment plans online, with two-thirds of them indicating the convenience and visibility of this method as a major asset. “Organizations that use mail or even text messages can engage the customer and direct it to a payment or debit platform, at a time convenient for customers. This often increases the probability that debtors will meet their repayment schedules”, Experian experts commented in their report.

It is not a coincidence that more and more software and big data processing solutions emerge on the market lately. They are mostly aimed to automate communication with debtors and enable an operator to manage the responsibilities of hundreds of clients. The most recent example that debt collection is changing is the startup company

AsiaCollect, which received an investment of $ 4.5 million in July to develop its product – a platform that allows easier communication with debtors, while giving them various options for action and advice.

Nagotiations with a machine

Over the past three years, there’s a visible trend of online communication with debtors that is not only per mail, but doesn’t feel like there is a human agent on the other side at all.

Different companies use, for example, online calculators to allow their clients to make a plan for repayment themselves.

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Increasingly, however, there are also platforms where the debtor can literally negotiate and renegotiate payment terms and then pay online. Recent trends are the development of self-learning systems and artificial intelligence, which automates the decision-making process of the debt collection company. Simply put, companies use models based on credit history data of customers, so the computer can “learn” different behavioral patterns and react accordingly. The communication channels that use this approach are different – mail, chat or SMS, but the main thing is that they are personal and give full discretion.

“Organizations that use mail or even text messages can engage the customer and direct it to a payment or debit platform, at a time convenient for customers. This increases the likelihood that debtors will meet their repayment schedules”, so Experian.

The Debt Collection Agency has invested in various digital solutions over the past three years in order to improve its business processes. The next step in the digital development of the company is the introduction of good practices and solutions to offer the company’s private customers easier and more convenient ways to repay their obligations.