Over the last year, a lot of industries have had to rethink their strategies to adapt to the changing times onset by the pandemic. With focus increasingly turning to customers’ needs, the finance sector was one of said industries. COVID had a disastrous effect on the global economy. Regulators have had to be aware of the pandemic’s financial impact and the potential increased risk this would cause to vulnerable customers.
It is evident that customers are in dire need of real support from their banks and a tailored approach to debt collection. In today’s digital-first world, customers expect speed and demand flexibility, accessibility and choice. Yet, the banking and financial services sector has largely failed to evolve to meet these normal expectations. The emphasis now needs to be on boosting customer experience, streamlining operations and cutting overall costs.
Data analysis and AI technology has already significantly improved customer experience. Debt collection is the process of pursuing payments of debts that are owed by either individuals or businesses, and it has been a big industry challenge for years. While there is rarely a shortage of data available to debt collectors, it is not always easy to find the information that they need. Technology can help to overcome many challenges by supporting debt collectors in sifting through what is available more efficiently and by providing more comprehensive datasets, rather than limiting the information they have access to.
Customers today expect a personalised, digital experience from banks. Phone calls and letters are fast becoming outdated means of contact and are very unreliable. However, with a smart contact strategy, where organisations use smart, connected, and automated technology to align operations with the changing dynamic of customer interaction. By using data and AI and designing algorithms with predictive models in new ways, debt collectors will be able to revisit their whole engagement strategy for collections. The pandemic has resulted in a huge rise in debt levels across businesses in the UK. Banks and debt collectors simply cannot work to this scale with the existing, legacy systems many still have in place. The need to automate and revolutionize the industry and current approach taken to debt collections has never been more apparent. With an augmented AI-powered approach, banks and debt collectors can recreate customer experiences, and reimagine business operations, that support customers and drive better, faster resolutions.