Today’s world has rapidly changed, and digital technology has fundamentally transformed our everyday lives. Previously unimaginable things have become commonplace. For instance, we no longer have to wait in long queues at post offices to pay our bills; instead, we can pay them with a simple touch on our phones, or banking applications even allow us to request loans without the need for face-to-face interactions. It is clear that our technology-driven world has revolutionised and made our everyday lives more convenient, transforming not only our shopping habits but also our communication attitudes in recent years.
Changes in communication habits
The world of business is also constantly evolving, and one of the most important aspects of any successful enterprise is providing excellent customer experience.
According to the Global State of Customer Service Report by Microsoft, it highlights the majority of customers prefer to handle their cases immediately and on their own. As a result, 53% of users prefer to use self-service portals to manage their requests without the need for human interaction.
This research indicates that financial institutions should prioritise changing customer behaviour to deliver a better customer experience, and it is crucial for the debt collection industry too, to adapt to changing client expectations.
An efficient and convenient debt collection process can be achieved by leveraging digital technologies, such as self-service apps.
Streamlined payment management
Digitalisation has the potential to streamline processes and make finances more efficient, and digital tools can help businesses meet their debtors’ needs. Customers now expect seamless, convenient digital payment experiences that empower debtors to have complete control over their payments.
With the help of self-service apps, customers now have the flexibility to manage their finances in real-time, from any location. With just a few clicks on their devices, they can check their balances, review outstanding debts, request payment rearrangements, or make partial or full payments.
It’s a game-changer for customer experience, provides transparency, and can enhance the recovery rate.
What are the reasons for choosing a self-service app?
- Web application
It uses modern technology that eliminates the need to download applications from different app stores. Making it universally accessible from any device with a browser. It can be smoothly integrated into any existing banking app. That can fit the bank brand identity with the white label option.
Customer interactions within the application are immediately updated in the collection system. It enables collection managers to access comprehensive and real-time information for more efficient communication and interactions.
- Live chat for seamless communication
Debt is a sensitive topic for debtors, and clients prefer to manage their outstanding debts without the need for personal interaction, such as a phone call or personal visit. Virtual communication between debtors and agents is more comfortable as clients navigate through their financial difficulties.
Live chat is integrated into the self-service app, and it serves as a bridge between digital processes and the human touch. Clients can handle their cases in real-time and can receive immediate responses from agents through it.
This real-time support enhances the customer experience by reducing waiting time, fosters transparency, and leads to more efficient debt collection.
- New wave communication with push notifications
The self-service app offers a new communication channel in the collection process. Push notifications are the key to client-centric and personalised communication. Debtors receive instant updates, payment reminders, personalised messages, and payment plans directly to their mobile devices.
For example, personalised payment plans can be delivered to the client’s device. This streamlined method allows customers to review and accept payment plans at their convenience.
What are the business benefits of self-service apps?
- Cost-effective
Self-service apps with live chat and personalised payment plans via push notifications are a cost-effective approach to collection. Automating reminders and payment plans reduces the need for manual interaction and associated labour costs.
Debt collection agencies can handle a large volume of cases at the same time, thus streamlining operations and reducing costs. Additionally, they can optimize resource allocation to enhance efficiency further
- Better collection rate
Another key benefit of the self-service app is its simplicity. Debtors can manage their finances and make payments from anywhere, at any time. So targeted push notifications further improve debtor engagement and cooperation.
According to the McKinsey report, in-app notifications have a 92% success rate in achieving full payment. Push notifications have a similarly high success rate of 88%.
Surprisingly, traditional channels only achieve a 12% success rate.
This significant difference highlights the effectiveness of push and in-app notifications in engaging customers through their preferred communication channels, ultimately resulting in a significantly higher payment success rate.
Conslusion
Self-service applications are a significant advancement in debt collection, providing an innovative approach that improves the collection rate. So these apps use modern technology to enable debtors to seamlessly manage their financial debts with unparalleled simplicity and transparency. With real-time access to outstanding balances, universal payment options, and personalised payment plans, debtors are now able to take control of their financial health.
Building better engagement and positive experiences.
If you’re interested in discovering how you can enhance the debt collection process while prioritising customer experience and optimising recovery rates, we encourage you to explore our latest white paper or book a consultation with one of our business experts.