How do enterprises like Lending Club, Kabbage, Rocket Mortgage, and other prominent financial entities consistently gross millions a year? Driving sales may seem like the apparent answer; however, CEOs Scott Sanborn, Rob Frohwein, and Jay Farner will tell you that sales are only part of the equation. Financial executives must also develop and implement strategies that focus on managing and recovering debt.
Creditors and lenders make money from fees and interest rates. When customer accounts become delinquent, it reduces the company’s earnings potential. While having some debt can be beneficial, written off, or irrelevant to a corporation operating at a loss is never ideal.
Debt Collection Advancements
Ultimately, the most successful CEOs harness the power of modern advancements within the debt recovery industry to simplify the process for themselves and their borrowers. Here is a look at some innovations helping executives resolve delinquent accounts and boost their bottom line.
Digital Platforms
Before the internet of things, managing customer accounts involved maintaining paperwork and filing systems. These processes are not only expensive (paper, ink, files, storage, shredding, etc.) and time-consuming, but they left room for human error and compromised consumer data.
Today, CEOs utilize digital debt recovery services. These agencies provide secure, user-friendly platforms to store, organize, review, share, and manage customer accounts. Such services enhance sustainability, streamline operations, and safeguards consumer data, saving businesses millions in expenses and man hours.
Borrowers also appreciate the convenience, security, and control digital debt collection platforms provide. From their computers or smartphones, borrowers can view their balance, schedule payment arrangements, and utilise comprehensive tools to help them resolve their debt.
Improved Communication
Contacting customers to resolve past due accounts was once a gruelling process for creditors, lenders, and borrowers. Correspondence sent through the mail got ignored, resulting in repetitive, aggressive, and sometimes intrusive phone calls that strain customer relationships. Consequently, delinquent accounts go unresolved.
Modern advancements in debt recovery have improved communication efficiency for corporations and borrowers. Voicemail drop lets agents leave messages without ever ringing the phone, allowing customers to listen and respond when it’s most convenient. Modern debt collection platforms enable corporations to send automated reminders via text, email, or mobile app notifications. Artificial intelligence technologies generate prompts that help guide agents to steer the conversation in a positive direction, including various repayment options, which improves the customer’s experience and increases the probability of resolving the account.
Data Analytics
There is no one size fits all method for contacting customers and resolving past-due accounts. In the past, figuring out which processes were most effective for each consumer was time-consuming and costly. Modern advancements like data analytics streamline the process, making collection efforts more efficient.
These machine-learning algorithms collect, analyse, and store data that gives agencies more insight into customer behaviour. It records information, from call times and effectiveness to contact methods and consumer engagement.
The data collected can be used to determine the best time to call customers, the most effective communication source, and even the time of month the customer is most likely to make a payment. Data analytics enhance the debt recovery process by increasing contact rates and providing conveniences that persuade customers to pay down their balances on terms that work best for them.
Advanced Security
When consumer data is damaged, lost, or stolen, it creates a multitude of problems for creditors, lenders, and borrowers. Cybercrimes are becoming increasingly threatening to the financial sector, so using advanced security measures is vital. CEOs that utilise digital debt recovery services are ahead of the game. They provide secure platforms to protect consumer data while implementing strict security measures to remain compliant with industry regulations.
How do some of the most prolific financial institutions remain on top? They are run by extraordinary leaders who understand the importance of driving sales and implementing practices to keep delinquent accounts under control. As operating at a loss isn’t ideal, tapping into innovative resources like digital debt recovery solutions helps corporations finish in the green.
