Developments in machine learning (ML) and Artificial Intelligence (AI) are having a great impact on the debt collection industry. At its core Machine Learning generates predictive models using algorithms that learn from data. The idea is that if we can input enough useful and reliable data, we can build models which can make predictions on our behalf.
There are a number of ways in which machine learning can aid and improve the debt collection process:
Reduce Workloads
Collections departments place calls, send countless emails, and seek to work out payment plans — and very frequently none of the above activities translate into the successful recovery of debt. With ML this changes. Since tasks are automated, users experience higher productivity and less time spent on labour-intensive tasks.
Protecting Your Business Reputation
Since ML can automate communication, you know that all your business correspondence will be professional, methodical and unambiguous. LATERAL’S debt collections software provides its users with a non-intrusive, customer-driven point of engagement, which is proven to be highly successful.
Knowing the Best Time to Contact Customers
You can use ML to predict the best time and the best forum by which to contact your debtors. Then you can prioritise calls and texts by the time of day a debtor is most likely to respond. LATERAL’S omni-channel collections process also provides its users with 2 way SMS, Live Chat, and VOIP integration. ML can vastly reduce your telephone costs, whilst also increasing connection and collection rates.
Increases Compliance
Humans make mistakes, it inevitably happens. The great benefit of ML is that it can impose strict parameters on how your collectors work each debtor’s account. Compliance violations can also be highlighted and predicted with machine learning.
To conclude: Machine learning gives its users the opportunity to better understand their debtors’ needs, to react faster than ever to a changing landscape, and to vastly improve debt recovery rates. What does it take to get started with machine learning? Request a demo from LATERAL today to learn more.