If you’re looking for a fresh perspective on your collections strategy, check out Lateral Technology’s latest top trends in debt recovery.
1. New Legislation
On 4 May 2021, a new UK Government scheme gained increased prominence in the debt recovery universe. The legislation aimed to offer greater protection to debtors with qualifying “problem debt”. The new rules were outlined in The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the “Regulations”). Importantly these new regulations prohibit a creditor from taking any action on a qualifying debt for the prescribed “breathing space” period of time. These new rules constitute relatively strict obligations on creditors, and further add to a strong compliance culture which already exists. Investing in a collections CRM platform is the best response to these increased regulatory demands, since it provides automated compliance with all government rules regarding appropriate collection and recovery practices.
2. Single View of Debt
A ‘single view of debt’ is perhaps the most exciting and innovative breakthrough in the collections process in recent times. A single view of debt is a 360 degree view of a debtor, which leverages data analytics and presents all the debt an individual or company owes, in one location. It helps collections teams to make better decisions, and means business can maximise their efficiencies, and government agencies and local councils can present clear payment plans to their citizens.
3. Self Service Tools
Self service is another top debt recovery trend worth paying attention to. Collections teams are certainly evolving towards more customer-centric and self-serve debt recovery processes. A customer self-service (CSS) platform allows debtors to control their payments themselves. The emphasis on a more personalised customer experience, and also the 24/7 availability of the platform, leads to improve debt recovery results.
4. Go Omnichannel or Go Home!
Omni-channel communications are also about driving customer-centric communications. AI and ML can leverage data points to automate the most effective correspondence to debtors via text, email, WhatsApp, messaging and calls. The big data that the ML algorithm masterfully massages, means the omni-channel debt recovery software can work out when and how the debtors are best reached; i.e. under what circumstances they’re most likely to respond and make a payment.
5. Specialised applications of AI/ML
Specialised applications of AI and ML are also at the forefront of successful debt recovery processes. Artificial intelligence debt collection software can be used to create human-like ‘voices’ and incredibly personalized experiences for debtors. These ‘chat-bots’ are proving to be very successful tools. With consumer communications preferences staying firmly in the digital sphere, these chat-bots can certainly work to extend and optimise the outreach of the debt recovery process. Furthermore, when it comes to business intelligence and data analytics, AI and ML are answering all the questions. Complex algorithms embedded within the debt recovery software can process large sets of data relating to call effectiveness and the value of certain accounts, which can be invaluable in informing the omni-channel communication processes (above).
Digital tools continue to create a constructive disruption in the collections and debt recovery industry. To learn more about how Lateral’s advanced debt collection and debt recovery tools can help you adapt and evolve, get in touch today!