A modern digital experience with a transparent online debt collection solution would not only help companies to cut costs, it would also help more of their customers to get out of arrears. Sounds too good to be true? Not at all. By allowing the customer to deal with their debt when and where it’s convenient, user-friendly debt collection technology leads to more people making more payments.
After all, nobody likes discussing their debt in front of colleagues at work or when family are within earshot. Digital solutions mean customers can deal with their debt privately, quietly and at a convenient moment.
Clear visibility, at the customer’s convenience
How? Basically, collections are made via a responsive web page that the customer can access wherever and whenever they choose … day or night, at home or in the office, on their mobile, tablet or PC.
Digital collection solutions are easy to access and, once quickly logged in, the customer has a clear picture of their financial situation and all the options available to them: paying off all they owe, setting up a monthly payment plan or making a promise to pay. The best solutions also provide a budgeting and/or forecasting feature to help the customer get a better picture of their overall financial position and what they can afford to pay.
An all-round winner
With digital collections, companies have a win-win solution; get it right for your customers and it will be good for your business.
For the customer, digital collection tools are more convenient and less intrusive than traditional letters, phone calls and house calls. This means they’re not put under so much pressure. Combine that with clearly presented information on their debt and the options available to them and, most crucially, the sense of control that all of these things engender and customers are more likely to act.
For the banks, utility companies, retailers and other companies that utilise collection and recovery solutions, moving to a digital platform raises repayment rates, reduces operating costs and frees up call centre and face-to-face staff to focus on less active customers.
What’s more, companies can easily see how active an individual is, so they can target their resources on the accounts that are not taking any action. When calls are needed, call centre staff have a complete picture available to them, making phone calls more effective and, ultimately, shorter.
There are other benefits too. Companies can show that they are being fair and transparent in their dealings with debtors, ensuring compliance with the conduct risk agenda and responsible lending guidelines.
For many customers that use a digital debt collection solution this may be their first exposure to a digital channel. So if the customer has a good experience with self-service collection tools, they will be more willing to adopt other digital services.
Is your debt collection stuck in the pre-digital era? Are you making the most of digital to improve repayment rates?