The global debt collection software market is expected to reach $5.6 billion by 2026. For this reason debt collection industry stakeholders regularly monitor emerging trends and insights. With industry practices, compliance demands, and debt collection technologies constantly evolving, it’s important to look ahead to the future. Here we outline the biggest emerging trends in debt collection for the coming year.
1. Digitized Collection Strategies
Digitized collection strategies will continue to be the leading debt collection trend emerging in 2020. More advanced software will rise to the top, segregating defaulting consumers based on more precise data points, including credit history and the percentage of their loan which remains unpaid. The most advanced debt collection software and debt recovery software will use machine learning to personalize the debt recovery process, and automated communications will become more precise and personal, and yield greater rewards.
2. Rising Debt
Consumer debt is rising, and will continue to do so in 2020. In the UK the level of unsecured debt as a share of household income is now at 30.4%, which is the highest ever recorded level. Brits owe a total of £72.5 billion on credit cards, with each household in the UK now possessing an average of £2,688 on unpaid credit card bills. These statistics are likely to be a catalyst for anticipated changes in compliance legislation, and an increase in the need for investment in effective collections software.
3. Security
There will be an increased demand for consumer protection and improved data security in 2020. Those businesses employing workflow automation will be better positioned to ensure they’re complying with any regulations which may arise. The maintenance of proper communication, paperwork and data is best served by advanced collections technology, which can be modified and controlled with ease.
Of course non-compliance with new regulations can have additional financial consequences for businesses pursuing debt recovery.
4. Customer Satisfaction and Collaboration
Advanced debt collection software will result in improved customer satisfaction. Artificial Intelligence’s predictive analysis will improve in a number of ways, including in its analysis of the communication preferences of customers and even the time of day you’re most likely to receive a response from them. The industry will experience a continued progression away from traditional call centres and towards omni-channel chatbot solutions, and communication via WhatsApp, text messaging and email. Using debt collection technology organisations will make interactions with customers more engaging, adopting forms of communication which will lead to more positive and profitable exchanges. The proactive automation of debt collection will remain critical to every organisation’s long-term financial stability and growth.
In 2020, the debt collection software industry will continue to thrive and grow – serving as a tool to facilitate more friendly relationships between collectors and debtors. Request a DEMO FROM LATERAL and experience first hand how your collections process can stay on the cutting-edge in 2020.