The ultimate DCA challenge: optimising debt collection. There are so many ins and outs of debt collection, its not an easy task.
Debtors make themselves unavailable, hard to approach, and typically are difficult to cooperate with. With that being said, once collectors are able to get in contact with the debtor, it is vital that there is an efficient and compliant process to confirm a collection of payment. This paper explores optimising debt collection.
Debtors are no longer on their landlines
However, recent studies about where and when to connect to debtors have shown some remarkable insights about how the industry needs to adapt.
The chart below shows that fully 45% of UK households do not have a landline, while nearly 85% have a mobile phone. That ratio – mobile phones to landlines – puts the UK as one of the most mobile weighted collection geographics in the entire survey.
Mobile solutions are necessary
Even more alarming, the mobile-only audience is even heavier amongst the more indebted, lower economic strata. This authoritative study in the US conducted by PEW research shows the cellphone dependents are higher among lower-income households.
So while we are all familiar with the steps of collection, its critical to find mobile-friendly ways for them to collaborate.
Mobile lifestyles make it impossible to cooperate with collectors
The long processes involved to collect debt are made more difficult by needing to collaborate with debtors who are on the go and have no access to printers, scanners, or even email. No wonder seemingly simple tasks like identifying the qualifications of the debtor, including their billing history and identification, present the terms and conditions to ensure that the deal is legalized and reading through tedious scripts become nearly impossible.
As an industry dependent on phone calls, have we adapted to this mobile shift?
Is there a Secret Sauce For Debt Collection with Mobile customers?
There are technologies can optimize this process through its efficiency and ease – even when speaking with customers on the go. Through text/SMS- initiated technology, collectors can now complete collection processes in the call. For example, by sending the terms and conditions to the debtor in-call and allowing them to process the information as they wish, collectors can maximize the phone call and ensure that they are making progress. Having an instant signature can rid collectors from the obligation of reading terms and conditions verbatim during a call -slashing handling time.
Real Time Technologies Reduce Points of Friction Between Debtor and Collectors
Real time technologies will help to streamline the process and reduce the points of friction that occur when utilizing different channels. Having the ability to exchange documentation and invoices and e-sign payment plans in one platform saves time and enhances user convenience.
A single platform allows the collection of debt to reach its most productive stage. This facilitated form of communication allows the debt collector to easily arrange payment plans to fit the debtor’s abilities and ultimately collect the required credit with ease.