Collection is essential in the sales cycle of any business and especially for the banking credit cycle.
5 min read
The opinions expressed by employees are personal.
They say that the collection pays the broken plates of a bad credit placement, and many times those who are engaged in this activity are treated like the bad guys in the movie, but as in any activity, there are good people doing good work and bad people. doing the job wrong.
Many times relegated to the background, collection is essential in the sales cycle of any business and especially for the banking credit cycle, and the financial stability of a country, since the money that the bank grants in credits is not money from the Bank is from savers.
The recovery of the overdue portfolio is essential for any financial institution, since it depends on its subsistence and the expansion of credit for productive purposes in the economy in general. That is why today we will talk a little about how it is that new technologies can be used in this field.
Within this business branch, customer data is huge, varied and tend to increase constantly.
The cost of storing information on own servers in primary facilities and its security backup in secondary facilities has a high cost for portfolio recovery companies, the use of external servers with backups in several countries and wide adaptive capacity Band for use can lower costs and increase security dramatically.
Data storage is nothing without the analysis of such information, decentralized Big Data coupled with the use of Machine Learning can give us powerful insights about user behavior, the level of indebtedness, the best days and hours of contact, credit behavior , all this in order to make a better risk assessment of each client to identify and improve collection strategies that can increase the volume of portfolio recovery and lower costs than a data analysis team.
Also in the handling of the data we can talk about the importance of CRM designed exclusively for collection, as in the case of SELEG1, a collection agency that innovates in the creation and use of special CRMs for collection management and that can be conditioned to the specific needs of any client.
New communication channels
The ways people use to communicate today are different and more varied than just telephone, traditional mail, email and SMS, currently new means of contact such as WhatsApp, Facebook messenger, Line or a private chat on the website can be used from the bank or collection agency.
In addition to the previous point, artificial intelligence can also be coupled in the new means of contact through chatbots, automating the collection conversation with customers and also using machine learning to increase the recovery of overdue portfolio, and although it is true that these bots are not yet able to manage the difficult portfolio, if they are already able to manage the easy portfolio, freeing up the space of human managers to focus on the most complex cases.
Online self-service platforms or we could call it self-collection or self-negotiation for the payment of debts without a collection executive in the middle and that only generate a commission cost in case of obtaining positive results of the collection as is the case of the Experian company and its eResolve collection management platform that, through its digital collection platform, serves 24 hours, 7 days a week, 365 days a year, with a friendly atmosphere for new generations accustomed to online interaction.
Collaborative collection economy
Another area where it is currently innovating is in the use of Uber-type services dedicated to collection, as is the case of Kobra, a home-based collection network with a presence throughout Mexico that operates through an application where managers Independent receivables can register and manage overdue portfolio close to their domicile of various banks or financiers and receive commissions for the results they give, without the need to comply with strict schedules.
In short, technology and new ways of doing things reach all branches and collection is no exception, debtors of the digital age require collection of the digital age.