Debt collectors are constantly trying new technologies to contact debtors more efficiently. Some of these new methods even allow them to remotely repossess items they bought on credit. They also use powerful security controls to keep consumer information safe. Cybercrime is a growing concern, and with it, the need for advanced security measures has increased. These new technologies include cloud computing, artificial intelligence, and Internet of Things (IoT) security. Some collection agencies use end-to-end encryption for their data and backup data daily using redundant virtual computer servers.
For example, predictive analytics can help debt collectors create customized incentives that target specific consumers. Advanced analytics can also help debt collectors identify micro-segments of consumers, allowing them to better design targeted interventions. This helps them collect more money, faster. But it does not stop there. Technology can also help businesses make their debt collection processes more efficient.
As consumer debt grows globally, effective debt collection practices will become more important. Until now, collections practices have been reactive and batch-based. However, as delinquency increases, the number of touchpoints and digitized consumers increase, it’s essential that collection processes become more automated and intelligent. Fortunately, cloud technologies and artificial intelligence can help improve collection performance.
In addition to reducing the number of missed payments, tech can also help businesses build better relationships with debtors. Voice recognition technology, for example, will help collection agencies identify debtors by voice alone, which will eliminate the invasive questions that turn people off. It may even prevent people from answering their phone.
Debt collectors need to take advantage of these advances to stay competitive and make a name for themselves in the market. The right tools can help them improve customer retention and loyalty, boost repayments, and comply with regulatory requirements. With these new technologies, debt collection companies can compete with the big players and create their own brand name.
Debt recovery is a complex process that requires sophisticated technology. Buzzwords like AI, machine learning, and data science can make it hard for the average person to understand these concepts. While these technologies may be difficult to understand, there are several companies using these technologies to improve their results. To begin with, consider a company called TrueAccord. This company uses AI-based artificial intelligence technology to automate communication with debtors. Its Patent-Pending decision engine is capable of creating personalized digital experiences for each consumer. The technology compares a consumer to a database of 1.5 million other consumers to identify which communications are most effective.
While most debt collection agencies still rely on traditional methods of communication such as phone calls and paper mailings, this company is taking the entire process online. Debtors can also access a portal that will allow them to track their collections. Additionally, they can receive payment online the same day. They can also track their responses to the calls and mails.