Why Digital Debt Collections? Why now?
Digital debt collections aren’t just an increasing necessity but are highly beneficial. It provides a symbiotic relationship in between lending organizations and consumers.
Two pillars hold the tenets of digital debt collection.
1) Consumer Preference.
It is a fact in today’s day and age that consumers in debt, do prefer digital methods of recovery. As most of them are not responsive to phone calls, they would not entertain written/physical mails or notices. They would instead prefer chat or email. They would like to be contacted at a time, place and channel that is convenient to them. And they want to be in control of it all, which is why we are seeing a significant change in that market—a paradigm shift from the traditional way of doing collections to digital. Consumer preference is an essential factor that is driving change in FinTech. This trend will continue in the years to come.
2) Regulatory Pressure
Whether it is the new debt collection rules by local governments or the blocking of telemarketing calls by service providers and apps, there is a gradually mounting pressure on traditional debt collectors. And escalating enablement of digital-first collectors. The tailwinds for the digital model is robust. With the increasing debt in the years to come, it would not be possible to scale up that many numbers of call centre employees or dismount them when they aren’t required anymore. The air of uncertainty around COVID is a defining factor as well. Debtors will be financially distressed, and as digital debt collectors, we have to offer the technology at scale. It is essential to service customers in the most humane way possible. If the defaulters start spiking, there is no point tiring out the call centres. It is path-breaking technology and digital services such as the ones provided by spocto that will eventually come to the rescue. spocto’s advanced digital debt collection solutions will help the customers in distress
The added element of cohesive compliance, along with efficient and scalable processes, keep spocto relevant with the ever-evolving digital debt collection norms. Check out our collectech offerings at www.spocto.com