Digitalization, competition, and regulation are converging to push the sector to innovate and transform. This is more needed than ever as the cost-of-living crisis has begun to erode the foundations of financial stability of many families across the world. Borrowers in need of tailored assistance must be supported with effective services, often in large scale, as financial difficulties tend to hit many simultaneously.
Banks seek to satisfy customers, to save costs, and to achieve better recoveries at the same time. It is challenging without the right technological underpinning that enable digital self-servicing, hyper-personalization, utilization of actionable data and advanced analytics.
What are the key enablers to succeed under high-pressure and high-velocity conditions?
The adoption of customer-centric approaches in debt collection has been under way in recent years. But the pace of transformation is slowed by legacy IT systems and often by cultural resistance to change. To keep up with competition, live up to customer expectations, and comply with regulatory requirements – that are often stringently enforced almost “overnight” – banks need to be in the game of championing “change”. Composability, no-code / low-code flexibility are among the key enablers to succeed under such high-pressure and high-velocity conditions.
In our infographics we have summarized the five key technology trends that are transforming debt collections today:
1. Digital-first approach
2. Advanced analytics-based collection
3. Enabling artificial intelligence
4. Composability to enable ecosystem collaboration
5. Cloud-based models taking hold in collections
To start delving deeper into each of these themes, check our infographic.