New ways of collections, led to the lending industry talking about it

Knowing there is a payment due and knowing the various modes to make that payment are two different topics altogether.

Moreover, choosing the most efficient and effortless method to pay makes all the difference for a customer.

Customers are waking up to the reality that the earlier modes of payment liking walking into a branch or stopping by an ATM to drop a check in the drop box are no longer feasible. Even paper statements are being rendered ineffective due to the fear of the ongoing pandemic.

Banks that have been tech savvy have adopted digital in all areas of their work including debt collections. We are talking of the lending industry educating customers to go digital, pushing and nudging them to adopt digital channels which is at their convenience.

Innovative technologies driven by artificial intelligence and machine learning makes the digital journey unique for each customer. Customers are not expected to know machine language or English only for that matter.

Technology has advanced to levels that machines can adopt to the language the customer is comfortable in and provide options the customer would like to rather choose from.

For instance, the graph above denotes the collections before and after digital adoption by a member of the lending industry.

Bounce percentage for predue cases before adoption of digital channel for collections and post adoption of digital.

The impact is clearly visible. It not only is beneficial to the lender but also to the customer who is experiencing a new wave of interactions that has not been seen before.

As they say, it’s a small world, and so the mine that is discovered by one, does not remain a secret possession for long, and it shouldn’t be either. What makes it easier, efficient and better for all should be shouted out loud from roof tops, and that’s what each of them have been raving about leading to everyone ready to jump up on the band wagon as soon as they can.

 

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