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In the last few years, we have witnessed a rise in financial debt worldwide due to rising interest rates, supply chain disruptions, hirings freezes, etc. All of this has culminated in the current scenario, where debt has become a persistent problem for both lenders and customers. Therefore, there is a need to follow the current and upcoming trends in debt collection which help in streamlining the collection, maximize cash flow, and at the same time continue to maintain a healthy relationship with the customers.
Here are some of the upcoming trends to develop a robust debt collection strategy:
Digitization and AI Automation
As AI and machine learning become more sophisticated, companies are relying on them more to perform tasks more precisely and efficiently. It has become evident that this trend would also be impacting the debt-collecting companies that are hoping to streamline their operations.
The debt collection industry has always had a history of negative press and bitter customer relationships. But, digitization has helped in reducing negativity and facilitating warmer relations. Digitization has helped in increasing speed, and simplicity, and maintaining transparency with the customers.
Omnichannel collection strategies
Companies are investing in omnichannel collection systems which will help them to maximize their reach and frequency. The emergence of omnichannel collection strategies has helped companies to approach customers through multiple channels.
Focusing on Customer Experience
Companies are trying to foster healthy relations with their customers. They are focusing on improving customer experience, which can help in reducing petty disputes or legal cases. Improving the customer experience will also help in smoother communication between both parties.
Self-service systems
Customers today want to be able to help themselves. They are interested in self-service systems which are both application-based or web-based. Self-service systems help customers sort their debt anytime, or at their convenience. Self-service systems tend to give complete control to the customers, and not be pressurized by traditional tactics like cold-callings, visits, etc.
Alternative payment methods
Companies should invest in alternative payment methods, which can help reduce delays. Customers have a variety of options to make payments at their convenience, and this method is more efficient than traditional. Currently, some non-traditional methods include google pay, apple pay, PayPal, and even cryptocurrency is getting popular.
The current need for the debt collection system requires the collecting agent to work for the customer, not against them. Customer loyalty tends to increase, promises are kept and complaints against the companies begin to vanish.
Attributed to Manavjeet Singh, MD & CEO, CLXNS
