Innovation in Debt Collection: Artificial Intelligence (AI) and BOTs

Chatbots Debt Collection

The latest industry report now predicts a 5.85% CAGR growth rate for the global debt collection software market during the period 2017-2021. Innovation will be a key contributor to this growth. Thus, it is no wonder that this topic made it to the top of the agenda at this week’s UK Credit and Collections Conference (UKCCC). Leading industry experts will discuss, how technology can increase Customer Engagement.

In our last blog post, we shared our learnings about digitalization and automation of recovery processes in debt collection. One benefit we mentioned, was the increase in customer experience. We have found that consumers often prefer to pay their debts without speaking to a debt collection agent, as it can be an embarrassing or stressful experience.

What we have learned:

» Only 8% of consumers who log into our self-service payment platform IM CollectionsSuite require support from a human being.

» Our partners, who work with our digital debt collection software have benefited from an increase in their NPS by up to 15 pps. Think about it: Faster and increased debt collection AND happier (paying) customers!

Will Artificial Intelligence and BOTs replace human interaction?

John Rickets, President of the Credit Services Association UK, points out: “As we know, the identification and support of customers in vulnerable circumstances can be incredibly complex and open to much interpretation (…)”. And, indeed, the collection of consumer debt can be very emotional for both consumer and agents. If you google “Debt Collection Agent” you will find keywords on the top of the search result such as “costs”, “court”, “emotions.”

As much as we humans would like to say the right things at the right moment, the truth is: We often don’t. This is why we believe BOTs and Artificial Intelligence will strongly contribute to customer satisfaction in the future – as an addition – to the debt collection workflow.

Nothing is more human, than a human. Or not? Tell us what you think at the UKCCC conference:

Debt Collection Expert and Director of IMSolutions, Iñigo Santamaría, will share more thoughts during tomorrow’s UKCCC Panel “Whatsapp, Facebook and Chatbots – More Effective than the Human Touch?”. Please come along, ask questions and share your insights! We are looking forward to meeting you soon in person.

Your IM CollectionsSuite Team.

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