Cybersecurity plays a vital role in protecting our most important information. Whether you’re an individual, or a leading a larger organisation, it’s likely that you care about the protection and security of your data. Legal firms, local councils, and debt recovery departments are all beginning to place their vital infrastructure online, making it vulnerable to attack. From smartphones to AI and machine learning systems, in 2020 the world is automated and connected. But how will cybersecurity evolve in 2020 and what will be top of the agenda over the coming year?

In 2020 it’s widely accepted that traditional call-centre led debt collection practices are inefficient and prone to human error. Those debtors you’re chasing often perceive that collectors are being intrusive and disrespectful. And likewise, many creditors feel that when they approach debtors via a telephone call, they’re left facing evasiveness and a lack of co-operation. So new practices have emerged. Ones which reduce debt collection costs for creditors, vastly increase customer satisfaction, and improve overall collection results. This new approach is based around multi-channel digital communications. The truth is digital multi-channel communications have a dramatic impact on collections success. They reduce the cost of all customer interactions whilst also enhancing the customer experience. It’s a win win. But what are the best communication channels to boost collections results?

Cash flow is the lifeblood of any business, and chasing payments you’re owed can be a very challenging task. Clients and customers are likely to present a number of interesting excuses as to why they haven’t paid you on time. Constructing a clear and appropriate response to each excuse will help you achieve your goal: fast payment. Here we outline some of the most common excuses which can be relayed from debtors, and the very best way to respond to them.

You’ve probably heard of CRM, but perhaps you don’t know what it consists of and how it can be a great asset for your organisation. CRM stands for Client Relationship Manager and broadly speaking it’s a system in which you can manage relationships with your customer base. When harnessed effectively, a CRM system helps businesses and organisations strengthen their customer relationships, and streamline communications, thereby improving their customer service, increasing sales, and ultimately increasing their profitability.

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.

As we look at the financial landscape in 2020, Artificial Intelligence is primed to provide a solution for multiple tasks, including in the recovery of debt. AI systems, including chatbots, improve overall workplace competency and reduce the likelihood of human error. By utilising the power of chatbots, businesses and organisations pursuing debt can achieve higher levels of success.

A chatbot is best described as a prominent type of Artificial Intelligence. It’s used as a form of communication between businesses and their customers. Chatbots are a means by which to leverage NLP (Natural Language Processing). This is AI technology that works by analyzing and understanding the human language that is being communicated. Most importantly, with NLP, chatbots can understand the intention and meaning of a conversation, rather than rather than just use the information to communicate with clients.

The automation of debt collection and debt recovery can dramatically reduce costs by eliminating wasteful or repetitive actions, and can simplify and re-organise each stage of the collections and recovery cycle. By using debt collection software to automate debt recovery, organisations can reduce bad debts, increase their adherence to compliance requirements, improve their debt recovery rates and streamline their whole management process. 

What is Automation?

The automation of debt recovery is when the management and accounting processes of collecting debt are run automatically. Debt collection software and debt recovery software manages the process on your behalf, reducing your labour costs and streamlining your collections process. The best collections software, such as Lateral, utilises a fully online, cloud-based web portal that automatically communicates with those who owe you money via SMA, emails, texts and letters. But what are the many benefits automation can bring to your collections department?

Today over 2 billion people across the globe use smartphones and this number increases every day. This means mobile technology is opening up innovative new commerce opportunities for law firms. Here are some tips on how you can take your law firm mobile, to harness the power of new technology, and grow your business.

1. Optimize Your Website For Mobile

It’s important to give your website a mobile-friendly makeover. Most people will be accessing your website via their phone, so check to see how professional things look. Fine-tune the display on your mobile website for optimal viewing and navigation. This is often the very first impression prospective clients will have of your firm. 

For any small law firm making a decision about investing in legal case management software in “the cloud” or on “on-premise” servers, we’ve outlined some important cloud-computing tips, which will be of use.

What is Cloud Computing? 

Cloud computing is computing services – servers, data storage, networking, databases – delivered remotely to clients over the Internet, which is referred to as “the cloud”. On-premise software is defined as software installed on the computers on the premises of the person or organization using the software, rather than existing in a remote capacity. When compared with an on-premise system, cloud computing can help lower a firm’s operating costs, run their operations more efficiently, and be easily scaled up or down if their needs change.

There are a number of challenges law firms face when it comes to billing for the services they provide. Billing discrepancies, inaccurate data, and delays in payments can put a strain on the warm relationship you hope to maintain with your client. So here we outline some tips to help you become more efficient at law firm billing.

1.   Get Mobile Friendly

It’s likely that your employees are with their phones for most of the day, so it makes sense for them to track their hours, and to bill, invoice and manage accounts from their personal devices. By using mobile-friendly software, you’re likely to prevent  losses on billable hours through missed time-tracking. Your employee is more likely to record their entries in real time if the can use their phone to do so.  

2. Harness Technology

Advanced cloud-based legal case management software solutions have a great role to play when it comes to being more efficient with your billing practices. Affordable and easy to use, you can now invest in an error-proof solution that bills and collects on your behalf. As an example, LATERAL has its own built-in time tracking tool, as well as integration with a legal time tracking partner, eBility. Because the legal case management software is cloud-based, time can be tracked and recorded at any time and anywhere. What’s more, reports and billing statements are easily generated by user, task type, and / or with a date range. The best legal case management software also helps its users to organise their cases and matters, and tracks expenses too. The whole process runs more efficiently.

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, personal, and yield great rewards.

Fresh perspectives are the key to developing an effective debt collection strategy. The industry faces an ever-changing strategic landscape, with changing policies and regulations emerging from all sides. But one truth remains: when the customer is empowered, through simple, instant and secure communications, which are customized to their financial and personal situation, the debt collection process becomes seamless and recovery rates are improved.  So how can you empower customers during the debt collection process?

Empowerment Through Communication

Collectors have found that customers gain a sense of empowerment when they can choose the contact channel through which they’re approached about delinquent debt. If they can take charge of their personal delinquency solution, and the timing and pace of repayments, they’re more likely to give you the money you’re owed. Gone are the days of call centres.

The millennial generation is one of the least financially resilient groups in the UK. 7.8 million millennial do not have savings or investments in place to help them achieve their personal ambitions. Recent research from YouGov for KPMG has shown that 42% of millennials say that debt repayments form a significant portion of their outgoings, and one in five millennials spend over 60% of their income on the same day it enters their account. Millennials, as group of people, form a large consumer base, so what are the best strategies to employ when collecting debt from them?  

Contacting Millennials

The millennials are people born between 1981 and 1996. Though the traits of millennials differ by region, understanding how millennials communicate is the key to successful debt recovery from this demographic. This is a generation who grew up with the internet, they’re tech savvy and they enjoy receiving communication via channels they’re familiar with. Your focus should be a digital mind-set. Instead of sending letters and making phone calls, debt collection software that utilizes online messaging platforms, emails, WhatsApp and texts will reap greater rewards. Millennials can settle their debts using channels they’re familiar with, on their own time. You will experience greater success rates.

The success of a business is critically linked to its liquidity. And successful management of the debt you’re owed can be the core measure of your company’s solvency. Debt collection software and debt recovery software provide an opportunity for your businesses to manage and recover debt, thereby improving your cashflow – the undeniable lifeblood of your business. Here are the reasons that prove why you need debt collection software.  

1.   You’re wasting time

Automation stands behind so many thriving businesses. A fine-tuned automated collections process, which harnesses the power of advanced software, provides you with the tools to make critical decisions, formulate efficient responses and analyse your company’s weaknesses. While your employees spend hours building and inputting spreadsheets and making phone calls, instead you could enjoy the benefits of an automated collections process, which saves you time and saves you money. LATERAL manages your entire debt collection and debt recovery process - automated payments, arrears notifications, and the control of letters, calls and texts using omni-channel communications. As a result, valuable labour resources are freed up, and that saved time can be invested in building your company.  

There are many benefits to legal case management software. By harnessing the power of technology to run a legal practice more efficiently and effectively, it improves productivity, profitability and client satisfaction. Here we outline some of the many great benefits of legal case management software in more detail.

1. IT REDUCES HUMAN ERROR

Solid legal case management software reduces instances of human error, which can often have a negative impact on efficiency and communication. Important legal documents and notes are secure and organised, and will never again be discarded or misplaced. Legal case management software makes it easy to digitally retrieve legal files and add notes and data to important documents. Accessing files via the cloud means they can be retrieved remotely, anywhere, and at any time. This feature means employees can work from home or take meetings outside the office, whilst keeping the information they need at their fingertips. Working in the cloud is a great benefit for those who travel, as they can always stay productive and on top of their work. 

The debt collection and debt recovery practice is modernising the world over. But in the midst of so much change it’s important to not annoy your customers in the process. Here we offer up some tips about developing debt collection strategies that will boost your customer service reputation, not damage it:

OMNICHANNEL COMMUNICATIONS

Omni-channel communications are a great way to take an holistic approach to contacting customers who have outstanding debt.  Omni-channel communications are consistent, complementary and seamless, which means customers are much more likely to respond to you efforts favourably. Traditional communication methods of placing phone calls and writing letters are not only out of date, but consumers also often find them to be disruptive and annoying. Letters are also sometimes missed entirely, meaning debt is often left unpaid. Instead, through an innovative omni-channel approach, you switch up how you communicate.

In recent years the UK has seen a dramatic shift in favour of digital payment methods, and the use of cash has significantly declined. In 2007 63% of all transactions were made using cash. But today that stands at only 34%. UK Finance estimates if these trends continue in 15 years time cash will account for only 10% of all transactions. In fact a 2017 study by Forex Bonuses found the UK to be the third most cashless society in the world. But what are the benefits of a cashless economy for small businesses? And how can SME’s harness the potential of our burgeoning cashless society? 

WHAT ARE THE BENEFITS OF A CASHLESS ECONOMY?

Our decreasing reliance on cash can reap many benefits for business owners. The first benefit is an increase in security. New payment technologies will lead to safer payments, and businesses won’t have to leave cash on their premises, which can potentially make them vulnerable.  A recent industry survey estimated cash handling costs each British retailer £3,638 a year on average, adding up to a total national bill of £17.8 billion. Thereby highlighting another business argument for a cashless UK. Secondly, a cashless economy can lead to greater efficiency and productivity for businesses. And by the increased collection of digital data and card transaction histories, businesses can build better behavioural profiles on their customers, which is a strong asset.

The global debt collection solution market is predicted to grow from $2 billion in 2019 to more than $3 billion by the year 2025. Debt collection software is designed to manage and streamline the debt recovery process. The industry’s leading software is powered by machine learning and artificial intelligence, which streamlines and manages the debt collection process. But how exactly does Artificial Intelligence (AI) make debt collection smarter?

WHAT IS AI EXACTLY?

In its simplest terms, AI is intelligence exhibited by machines.

When describing AI, Huw Price, Professor of Philosophy at the University of Cambridge said, “the potential benefits of creating intelligence is huge” and it will “transform every aspect of our lives.” Similarly, Sundai Pichar, Google’s CEO, called it “one of the most important things humanity’s working on. It’s more profound than… electricity or fire.”

The automation of a company’s credit control process can provide them with a significant advantage over their manually-inclined competitors. Workflow automation not only establishes accurate debt chasing, but also can automatically notify appropriate personnel of impending deadlines and important dates. These procedures have a huge impact on credit control, and therefore cash flow.

AUTOMATION BENEFITS

One great benefit of credit control automation is how the software tightens and controls credit limits and overdue invoices. Labour costs are significantly reduced when the software steps in and eliminates the need for employees to carry out these tasks. There are many benefits of credit control automation, but here are our top five:

1.    The automation of the creation and delivery of letters or electronic communications around your ideal process.

2.    Automated generation and distribution of all credit control communications, which align with your company’s rules and procedures.

3.    Instant oversight – since the software monitors and enforces credit control procedures, it saves on valuable resources.

4.    Credit limit workflow automation processes, which mean all decision makers are consulted before key clients are communicated with or have their status changed.

5.    An improved company expense management process.

According to new research based on Pitchbook data released by London & Partners, and Innovate Finance, London has now overtaken New York in attracting the largest amount of fundraising deals for FinTech companies. The English capital’s FinTech sector attracted a total of 114 deals worth a record $2.1 billion in the first eight months of 2019. These figures further prove the strength of the United Kingdom’s thriving FinTech industry, which generates revenue of £6.6bn per year. But why does the UK stand at the top of the pile?

DISRUPTORS

There are estimated to be over 1,600 FinTech firms in the UK, and this is expected to more than double by 2030. When it comes to debt collection, FinTech debt collection companies, such as LATERAL, have revolutionised a formerly dated industry. And this is an important reason behind the UK’s winning position. By introducing vastly improved rent recovery rates and an improved business experience for both creditor and debtor as a whole, the debt recovery sector has continued to thrive.  

Another important statistic (released by The Department for International Trade in May of 2019) found that the majority of financial services CEOs in the UK (62%) believe that a focus on emerging technologies is “the number one driver that will separate high-performing firms from the rest”. And British digital tech companies are the most connected in Europe, “second only to Silicon Valley for international connections. 25% of entrepreneurs across the world report having a significant relationship with two or more entrepreneurs in London, compared to 33% for Silicon Valley”.