If you’ve been paying attention to the debt collection industry recently, you’ll have seen that technology plays an increasingly large part. From the automation of day-to-day tasks to the convenience of digital payment platforms, technology is being used to improve the efficiency of businesses and debt recovery agencies when it comes to chasing payments. Thanks to technology, the entire debt collection process has been streamlined.
How Technology is Used in Modern Debt Collection
- Debt Collection Software – There are a number of tools that fall under the ‘debt collection software’ umbrella, all of which simplify parts of the debt recovery process. For example, debt collection software can be used to streamline day-to-day tasks like sending payment reminders, keeping on top of customer records and chasing overdue accounts. Similarly, compliance tracking software ensures that debt collection complies with regulatory standards, reducing the risk of legal issues further down the line.
- Automated Payment Reminders – With automated payment reminders, it’s a lot easier to remind customers of upcoming payments and payment due dates, reducing the chances of them paying late. Instead of having to keep on top of who to remind and when, reminders can be scheduled to send automatically. This ensures that reminders are consistent and personalised to the debtor, whilst also freeing up a lot of time.
- Digital Payment Platforms – Digital payment platforms make it a lot easier for debtors to pay, simplifying the debt collection process for everyone. Digital payment platforms accept a wide range of payment types, giving debtors a lot of flexibility when it comes to paying off their debts. Plus, payments are logged instantly, improving the speed at which accounts are updated and reducing administrative delays. By offering multiple payment methods, digital payment platforms encourage debtors to pay on time, whilst also providing a good customer experience.
- AI Analytics – Artificial intelligence (AI) is increasingly being used in debt collection, mainly as a way to use data to gain an insight into customer behaviour. By analysing data, AI can predict customer payment patterns, identify risky accounts and optimise debt collection, all of which help to maximise successful debt recovery. For example, AI can use customer behaviour to determine which debt collection strategy is likely to work best.
- Cloud-Based Solutions – Cloud-based debt collection solutions have become really popular in recent years, and this is largely due to their ability to provide scalable and accessible debt recovery. Cloud-based solutions allow debt collection data to be accessed from any location, which is ideal for teams that work remotely. Cloud-based platforms are also scalable, meaning they can accommodate an increasing number of debt recovery cases without requiring any big changes to the overall debt collection process.
At Cobra Financial, we embrace technology to provide an effective, efficient and successful debt collection service. We combine modern technology with our ‘tried and tested’ techniques to provide a debt recovery service that accommodates all types of debt, debtors and businesses. Get in touch to find out more.
