Technology advancements in Debt Collection that every business should know

Through technology, collections management can be optimized. This is important since a good collection process guarantees good financial health, but how can technology improve these types of operations.

Benefits of technology in debt collections management:

Thanks to the use of information technology, in the collection process, a higher percentage of debt recovery is achieved by allowing better portfolio management by automating payments followup, generating alerts, and segmenting priorities.
Another benefit is that there are more channels through which to manage collections; It is also advantageous because the planning of a personalized process focused on each debtor and type of debt is achieved.
The implementation of information technology, for collections, is also essential to guarantee compliance with current regulations in processes of this nature, carried out by the company.
Finally, it is also beneficial, because it contributes to reducing delinquencies due to economic crises, which are usually the trigger for the increase in the past due portfolio.

Automation of Collections and Payment Followups:

One of the great advantages of using technology is that it allows improving the collection followups and payment processes.
Thanks to technology, the information on the debts of each client are registered online. In this way, collection managers can access this information from their mobile or desktop devices and propose strategies according to each client's situation.
As can be seen, the automation of collections and payments, thanks to technology, allows better control of debts but also makes it possible to measure the productivity of each manager, as well as the operation of the collection strategy that has been implemented.
By having all the data in a single platform, different indicators can be established that allow an analysis of the tactics and strategies designed, to identify their efficiency or the improvements that could be implemented to make them effective.

Through it, Debt Collectors becomes financial advisors:

This allows them to offer each customer a solution based on their payment behaviour. For example, in this way, you can offer the option of reduction for the total payment of the debt, if the client can pay it in a single instalment.
If, on the other hand, the debtor presents problems due to situations such as unemployment or illness, other options can be designed for him, such as debt restructuring.

Increase channels of communications with customers:

One of the benefits of collection management technology is the increase in service channels. This allows the clients to have common use means for the portfolio recovery process.
In general, ways such as text messages, social networks, websites, etc. can be used. to improve the relationship with the customer. In the same way, these channels can also be used for preventive collection processes, to users whose debt is about to expire, thus avoiding the collection process for late payment.
The implementation of the technology in the collection management can occur in the same company or it can be outsourced. The outsourcing of processes is an effective way to have better control of the assigned portfolio. In the same way, it allows access to the cutting-edge technology used by specialized professionals whose management will contribute to the growth of the company's economy.
Thus, we can say that emerging technologies have redefined industries around the world. And so, 2021 promises to see several fresh changes as many key technologies levelled up the way the debt collectors work.
This noteworthy potential for refining on obsolete processes, connected with a deep unrealized revenue pool has shaped a close to perfect environment that promises AI and other emerging technologies that make a hard impact in 2021.