Collection evolution: from paper to the cloud
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Over the past two decades, debt collection has undergone a significant transformation. Previously based exclusively on paper and telephone calls, the days of using manual processes are over.

The essence of debt collection has been driven by the evolution of technology, transforming a traditionally manual process into a streamlined and powerful cloud system.

From the papers to the pixels: the evolution of digital tools

The late 20th century marked the beginning of automation. The use of computers enabled the switch from paper-based workflows to digital ones, making it possible to track debtors more efficiently. However, the process still heavily relied on manual data entry and communication. So we can say: debt collection was not very effective.

The huge emergence of the Internet in the early 2000s marked a turning point. 
The ability to send emails and access information online opened the door to more automated communication with debtors. The first debt collection software was developed with basic features such as automated email reminders.

The cloud revolution and the power of automation

The collection industry has transformed in the past decade. In the late 2010s, as cloud technology became more widespread, the debt collection industry began to be significantly transformed. Cloud technology has opened up new opportunities for more efficient and customer-focused debt collection, ushering in a new age in the industry.

These solutions became accessible and affordable for financial institutions of all sizes.  Here are some of the ways that cloud-based collection software has changed the industry:

Scalability for efficiency

Cloud technology enables enterprises to manage numerous cases at the same time, automating workflows such as sending reminders, managing follow-ups, and generating reports, freeing up valuable agent time to focus on more complex cases.

Omnichannel communication

Modern collection systems offer a wide range of communication channels, including text messages, automated calls, push notifications, chatbots, and even self-service apps for debtors to manage their debt. This enables debtors to be contacted in the way they most prefer, thus enhancing customer engagement.

Data-driven insight by AI

Modern collection systems can go further than basic reporting.  Advanced analytics capabilities provide invaluable insights into the collection process. It can reveal trends, average collection times and associated costs powered by AI. The high-end collection systems can analyse historical data to identify the optimal time to contact debtors to maximise the impact of collection. 
For example, communication with debtors can be boosted based on AI analytics. It can determine when, how and where to engage with customers. It enables a hyper-personalised approach to communication that reflects each individual’s preferences.

Why choose a cloud collection solution?

Financial institutions often face the challenges of managing debt. Cloud-based SaaS software can provide a solution that streamlines the processes and improves the bank’s financial health. With the power of AI and machine learning it can transfer debt collection to a positive experience, while maximising recovery rates. Here is how:

Client-centric collection

Machine learning algorithms can analyse interaction patterns and debtors’ profiles to hyper-personalise messages and actions. For example, personalised payment plans can be delivered to the debtor’s mobile phone in a push notification. Which is the most convenient way to pay debts or give promise-to-pay requests through the self-service app.

Significantly lower costs

On-premise solutions require a large up-front investment in hardware, software licences and installation fees. SaaS removes this limitation by offering a subscription model. It provides a cost-effective and flexible solution for businesses of all sizes. Cloud-based collection software can streamline resource management through scalability, faster implementation and included features such as updates and support.

Self-service cloud web app

The modern collection systems offer self-service applications where debtors can manage their outstanding balances on their devices. Customers can conveniently access their account information, view statements, make secure online payments, and give promise-to-pay requests, anywhere, anytime from any device with a browser. It allows a smooth user experience. Also, the self-service app can be integrated into the bank’s application, strengthening the one-stop approach.

Speed-up collection

Automated communication ensures timely and consistent contact with debtors, leading to faster recovery rates. This improves liquidity and reduces financial pressure.

Customised business solution

The potential for customisation is a key aspect of the collection industry. The right collection system avoids a one-size-fits-all approach. Rather, it allows for finetuning and configuring of built-in processes, strategies, and calculations to align precisely with the specific requirements.

The adoption of SaaS debt collection software not only streamlines the debt collection process, it can also be a powerful tool for collection professionals.

Collaboration is in focus

This software offers a central platform for managing debt collection activities. It allows easy access to every case in detail, enabling tracking of the processes and working together seamlessly. This fosters better communication and ensures that all members are on the same page.

Real-time in-house information

The easy access to comprehensive debtor information and communication history empowers agents to make informed decisions and personalise their outreach. Internal reporting and case documentation features also enable seamless collaboration with colleagues. It fosters a more productive working environment.

What can we expect in the future?

The future of debt collection looks promising, especially with the integration of generative AI and a focus on improving the customer experience. As technology continues to advance, debt collection processes will become even more streamlined and customer-centric.

Generative AI will revolutionise debt collection communications. These models can generate human-quality, personalised text based on debtors’ previous interactions and profiles. This will allow debt collectors to create unique messages that resonate more effectively with debtors, ultimately increasing their willingness to pay.  

In addition, the emphasis on customer experience will only grow stronger.

The rise of self-service applications and optichannel communication options empowers debtors to manage their debts in a way that is convenient for them. As a result, debt collection software will provide a more seamless and positive collection experience.


In summary, the future of debt collection will be characterised by advanced technology, such as generative AI, and a never-ending focus on delivering a superior customer experience. These developments will not only streamline the collection processes, but also improve recovery rates and financial health for businesses.

If you would like to learn more about how cloud technology and adapting different use cases can maximise the impact of collection, we recommend you read our latest white paper.

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