AI Disrupts Debt Collection in the Most Humane Way Possible
“Industries are excited about it, innovators are obsessed with it, but very few institutions are clear about what exactly they mean by it or what they can use it for”.
Artificial intelligence (AI) has progressively been used to generate advanced insights, revolutionise consumer engagement and effectively improve the results of an organisation in terms of customer satisfaction, increased loyalty and increased revenue.
This advanced intelligence has now been incorporated into a data-driven debt collection platform which enables organisations to leverage new technology in order to repair an old industry. Thus, debt collection strategies have become more dynamic to reflect the individual’s preference, as opposed to a static ‘one-size fits all’ approach.
AI can quickly identify and recommend the most effective means of contacting the client in order to get the most productive response and effective results. Personalising the debt collection service ensures the labour hours of collectors are put to the best possible use.
Data combined with AI, can then be used to adequately inform the collector on all an individuals payments that are overdue, who’s most likely to pay, the best time to contact them and what means of communication would be most constructive. By “humanising” the debt collection process results in higher success than that of traditional methods.
Over the past decade, lenders have outsourced debt collection to third parties which has lead to the occurrence of threatening and harassing phone calls, monotonous record keeping and even illegitimate collections in some organisations.
AI provides a solution, or is at least the “tool” in providing one.
Apart from evaluating the most effective means of engaging with the individual, AI is able to effectively communicate with the person by evaluating the individuals tone and gauge whether they are anxious, frustrated or satisfied. It is then able to use this information to formulate an adequate response, as well as negotiate solutions that are in the clients, and organisations, best interest.
This supports the collector as they are pre-informed of the clients emotions and current situation, and can take this into consideration when in conversation the client and proactively provide a solution.
Nevertheless, although it’s essential to encourage the individual to pay and ultimately provide a bespoke solution to do so, it is of utmost importance to effectively screen the debtor to evaluate whether or not they are financially insecure, untrustworthy or simply a potential liability.
AI and “big data” provide an effective solution by replacing tedious credit checks with automated processing of data, assembling it and comparing it to the criteria that determine who is a low or high risk debtor.
AI is getting very clever. With the use of AI digital screening, individuals applying for loans are encouraged to answer questions about their income, as well as their plans for repayment, via a video call. AI then analyses the call and the credibility of the caller by noting facial expressions, intonation and cross referencing them against internal implications.
This improvement has been proven to aid in an increase in the success of risk management and aid in streamlining a once perturbed need for hard copy documentation and time consuming processes.
Artificial intelligence will streamline and automate financial processes and improve existing financial practices by means of data analysis, whilst still allowing for more informed and nuanced decisions to be made.
At Blake & Associates we believe that the advancement of technology should always allow the industry to remained focussed on customers. The use of AI systems to process, understand, predict and power systems will increase client satisfaction and aid collector’s efficiency.
AI will not be the heart of debt collection and BPO agencies. But it surely will be the pulse.