Every day in numerous business sectors the power of Artificial Intelligence (AI) is being leveraged. By the end of 2020 it is predicted that 30% of companies worldwide will be using AI in at least one of their sales processes. When it comes to debt collection there is arguably not a stronger tool at your disposal than AI. Taking a digital approach to debt collection and debt recovery not only improves efficiency, it provides its users with invaluable data. Here we outline five important ways which AI can change the debt collection process.
1. Taking Things Digital
The fact is in 2020 the world is digitally motivated. Conventionally the debt collection and debt recovery processes were very labour-intensive, and human-centric in terms of the nature of how they were run. When collecting debt, businesses and organisations relied heavily upon human labour to make telephone calls to pursue debtors. But now AI can be leveraged to reach debtors via digital channels they’re familiar with: text, email, chat etc. You’re more likely to gain a response if you communicate with a debtor via a channel they use regularly and reply with regularly.
2. Putting the Customer First
A large proportion of customers are first-time debtors, and it’s important to maintain strong customer service and protect your brand and reputation. AI and Machine Learning (ML) can leverage data to devise and perform a complete debt collection strategy on your behalf. The communication is seamless and highly personalised. The collections process becomes consumer-centric, catered to the individual, and places a strong emphasis on customer service.
3. Compliance
When it comes to debt collection and debt recovery compliance demands are increasing all the time. Also new privacy laws have to be taken into consideration when you’re formulating your debt collection strategy. An automated AI solution help you in this regard. It never becomes aggressive or breaks compliance protocols.
4. Efficiency
The greatest way AI and machine learning can change the debt collection process is by its direct impact on efficiency. Automated processes are the reason for this. Instead of a labour-intensive and manual processes, an optimised, highly efficient automated collection strategy is brought into play. Great efficiencies are made and costs are reduced. Basically everything happens faster and more cheaply.
5. Omni-channel Communications
One of the key benefits of a digital debt collection strategy is the ability to harness the power of an omni-channel debt collection process. Omni-channel (meaning many channel) is a way to manage communications with debtors over a variety of digital channels including voice, email, SMS text, social media, and web chat. It helps you seamlessly communicate with your customers and meet their growing demands and expectations in terms of the methods of interaction they require.
With our award-winning Decision Engine, Lateral offers the most flexible and robust AI platform on the market. Request a demo and see first hand how we can help you deliver the very best results.