Digital transformation is everywhere especially during the pandemic going digital was the only option to keep the businesses running without interruption. Adaption to this new format went better gradually and it took very less time. This transformation is data-driven and decreased the cost across different financial services related to banking, debt collection and equity.

Whilst the traditional methods in finance is way apart that digital process, the end goal is always the same that is superior customer service and customer experience. However, while going through the primary reasons of poor collection and higher costs are indifferent customer approach, manual collection process and harsh collection strategies.

The regulatory concerns and wariness regarding technology adaption initially have slowed down debt collection process. Gradually, the odds are overcoming since the consumers can take care of their own finances and manage.

Challenges of Traditional Debt Collection and How AI-Driven Approach is Helpful

In the traditional approach the associates constantly make calls to the debtors via call, SMS or email. In most of the cases, the organizations get suboptimal results since the associates have no intimation on the customers’ profiles and they made random contacts to defaulters and others. Since the associates does not have prior information regarding the customers, unnecessary calls make them annoyed and generates dissatisfaction.

The traditional approach makes the associates to make constant calls to the debtors or meet them until the collection is complete. Overdue charges for unpaid loan get default charges and the lawsuit threats made by the collectors often make the relationship with the customers sour and often it becomes irretrievable.

Today’s digital platform inclined customers like fintech debt collection and digital mode of contact. This is first step forward for digitization of the debt collection industry. Being the front liners of this digital transformation the fintech companies take the AI or artificial intelligence and ML or machine learning route that are all based on data for collecting debts.

The Ways AI Approach Improves Customer Experience –

Customer Centric Collection

The customers today like personalized and authentic mode of communication. The associates of fintech debt collection get relevant customer insights for customizing their communications. They can choose the ideal channel, decide on the frequency and time to contact each customer.

Compliance Maintenance

The regulatory concerns are matter of attention and consideration and strict privacy laws; mitigation strategies are constantly clubbed with creditors that may often seem stricter to the debtors. However, AI driven data can help find the optimum strategy to keep everything easy and as per rules.

Customized Solutions

AI gets all data regarding the customers from financial history, social platform, credit score and more and this data leverage gives a 360-degree customer preview for a better understanding of the nature. This data bank helps in segregation of customers categorically and helps in strategy planning with recommendations. When in contact with the customers, the associates can show a better plan for repayment and more options.

An Omnichannel Approach

An omnichannel approach helps in the companies to create more of it when they have data support. It helps to employ and engage multiple approaches for contacting customers including chat, SMS, email or phone calls.

Better Efficiency

Analyzing customer history on loan payment give relevant insights for managing real-time issues better while contacting the customers. The data driven approach helps make the fintech debt collection process more goal concerned, fast paced and customer oriented.

Why Prefer Modern Technologies for Debt Collection

According to a popular report, 48% of the incoming calls are answered and the rate drops down to 26% due to unidentified callers. Since the enactment of FDCPA, the communication ways have changed completely.

With the digital platform transition, the fintech debt collection agencies now have a clear picture of customer requirement. With the complete customer picture, communication can go more effortless by employing artificial intelligence.

The digital debt collection agencies have smaller footholds on recovering debts than the traditional debts till date. The technology is getting involved in recovering money to the new cases and digital debt collection will go smooth without new staff but with a little training.

When you have bad debts to recover from a business or an individual, employing digital solution can make it easier than ever. Contact Vital Solutions for your large scale or early-stage accounts. We work for recovering automotive, credit card or mortgage loans. Go through the website and feel free to get in touch.