Blog Details

The Future of Debt Collection: New Tech and Customer Service

The recent crisis had a drastic impact on consumer behaviour. In the wake of the pandemic, businesses are now adopting the latest technologies. One of the major areas is the adoption of digital media. As a result, consumers increasingly use digital channels to interact and transact with businesses across industries. Obviously, the debt collection industry is no exception.

Debtors prefer leveraging omnichannel communications and self-serve options to interact with organizations. The question is whether collection companies meet evolving expectations while ensuring regulatory compliance? This totally lies in transitioning to a digital debt collection model that imbues agility and efficiency into the operations.

You must enhance the customer experience and give them greater control over their finances.

Digital debt collection

You must take a close look at the evaluation of customer engagement in the collection industry to understand better where you’re headed. Earlier, phone calls and collection letters were the standard forms of customer communication. However, as per recent research, over 75% of millennials avoid phone calls as they can be exceptionally time-consuming.

The change in consumer behaviour totally depends on new strategies. With the digital debt collection process, this enables consumers to engage with companies effortlessly. Under this model, customer service associates are available to support consumers, but only if they choose to avail their assistance.

The Digital approach empowers consumers to manage their debt based on their financial situation; it works best using self-service options and payment portals.

Effective strategies for the digital age

  • Meet customers

    It’s clear that as consumers become more tech-savvy, user-friendly channels must be at the top of your mind. Therefore, you must include omnichannel engagement, i.e., spanning Email, Text, and Chat. It’s a must-have for any outbound communication as a part of the digital-first world.

    The contextual channel enables debtors to pick up the conversation where they left off seamlessly. It equally ensures privacy. Here, consumers don’t have to speak to an associate on the phone. This makes it easier to avoid embarrassment.

  • Put customers in control

    Ensuring consumers have the right choice of engagement channel may not be enough. Businesses across industries, including retail and hospitality, raise the bar on digital engagement.

    Consumers equally expect this from collection companies. This means empowering consumers with complete flexibility, including allowing them to build their own payment plans and make incremental changes. It’s best to go for user-friendly apps and payment portals to create a secure, engaging and personalized experience.

  • Holistic approach

    Don’t stop by putting the customers under control. Instead, envision serving your customers as individuals with unique needs. It’s best to empower them with tools beyond custom repayment options.

    It’s essential to get creative with the payment options you offer. Going with specialized services such as dispute resolution and exceptional circumstances support can take you a step further.

Shaping the future with next-gen tech

The collection industry is going to experience intelligent automation solutions. This is basically a combination of Robotic Process Automation (RPA), Artificial Intelligence (AI), Natural Language Processing (NLP) technologies, and Machine Learning (ML).

With the advancement in technology, you can now improve outcomes for both consumers and businesses.