Defaulted debts and collection calls from banks and lenders have become all too familiar for the millennials. They are born amidst debt and will work all their lives paying it off. During their lifetime, they will be getting loans to finance their cars, homes, and education. They will also have access to credit cards which will all culminate into a bigger heap of debt, which they will ultimately pass on to the next generation. Even during the economic recession, millennials are faced with constant calls from banks, loan sharks, and payment defaulters during a pandemic that adds to the stress of their lives.
Like all things in life, debt collection methods have evolved, and they need to keep up as well as cater to the demands and ongoing trends of the clients during a pandemic. What we saw happening with our parents – with debt collectors showing up at the doorstep of your house, have now changed into untimely and incessant calls from the lenders. Despite these developments, the anxiety it causes to the borrowers has remained constant.
Now, ATS Services is part of the change that’s making the debt collection scenario a lot less intimidating to engage with, especially in the Indian market.
“We use technology and data as primary drivers to deliver a superlative customer experience,” says Aditya Bhushan, Managing Director at ATS. “The technology meets customers where they are and gives them a message that resonates with them. This change is necessary because the old ways just weren’t working.”
How Technology Changed Debt Collection – What’s Different?
One of the primary factors driving the change – especially within ATS – is that we’re moving away from Human-to-Human (H2H) interactions. “Increasingly, we’re engaging the Human-to-Machine model with web interfaces that make the customer engagement process a lot smoother.”
Humans and computers have come together in this process of debt collection, where the statistics generated by the machine are supported by human insights, so you have the ease of talking to an AI whose brain, thinking, and speaking powers match the borrower. This makes for a smoother consumer experience and is less stressful for the end customer, which makes it easier for your clients to pay their premiums back even if they online.
Here’s how debt collection’s muscle men have metamorphosed into massive, more intelligent technology.
- Debt collection is a lot more intelligent
Big data analysis sounds complicated and difficult. But, big data analytics are here to stay. Those who are fluent in the language of computers and are familiar with big data analytics might even call it fun. It is now harder to dupe borrowers since it is backed by the science of data and analytics.For instance, Indian debt collection agencies ramp up their debt collection calls for the US market in tandem with tax rebate season. “The ability to pay back a long-standing debt looks a lot more feasible after receiving a $1500 cheque from the government,” says Aditya. It’s what we’re doing at ATS as well. As a direct result of close motoring of customer data, we have a more granular customer segmentation, and we can also apply sophisticated tracking measures like sentiment analysis and deliver customized messages to the audience base on time and according to relevance. Data is a great way to customize your client’s payment plans to make it easier when they are navigating online payment portals during this pandemic. We’ve got a great track record of improving collection metrics because we’re driven by data. We’d love to have a conversation with you about it.
2. Better listening and speaking skills
Intimidation is a thing of the past. The newer generations are more resilient and are smarter, and will double-check the information online. Intimidation will only make them angrier, thus, will not return your calls or even respond to the tactics. This will alienate the clients and make them harder to reach and communicate with them regarding their payment plan. When companies realized that intimidation became a thing of the past, they had to update their systems and way of working. By bringing in soft skill trainers to teach their staff how to talk to borrowers by showing empathy, the conversations are much more productive. “A debt collection call can cause a lot of anxiety for people,” says Aditya. “We’ve trained our staff to listen to the people they call and acknowledge the stress they might be in. We’re working with the assumption that no one wants debt piling up, so the inability to pay could be linked with life circumstances.”
3. Emotion and speech analysis
Ensuring a smooth and satisfactory customer experience has been a top priority for us. Along with showing empathy, we also use speech analysis using technology.
“Massive tech is about harvesting and employing data for the customer’s advantage” continues Aditya. “You could have a COPC-certified call center; you could have a sophisticated and expensive dialler being used at your call center. But the people who call may not be very different from the earlier debt-collecting muscle who cause a lot of anxiety.”
No one is happy when they repay their borrowers. But we have to take the money that they owe. To make the experience bearable or even pleasant for the borrowers, we aim to build a good rapport with them. The tone and the cadence of the messages sent have to be just right – otherwise, the borrowers might feel pressured or angry. With sentiment and emotional analysis, we’re able to determine the real-time state of the customer and deliver the right message accordingly, and can also be used to leverage our client’s needs.
4. Outsourcing collections efforts
The number of defaulted loans is at an all-time high in the Indian economy and will rise so in the near future because of the world economy collapse. The infrastructure in place is still being developed and can be inadequate in the face of debt collection. Oftentimes, the banks and credit agencies find it far easier to outsource their debt collection efforts to agencies. Agencies like ATS offer non-invasive and non-threatening communication and outreach to the customer base, keeping the customer’s state of mind a priority when making these calls. Keeping in mind the emotional state and preferences of the borrower, we work with them instead of against them to guarantee payment of the loans.
Instead of sticking to archaic methods of debt collection that distresses the borrower and annoys the lender while being ineffective, opt for data-driven connections supported by digital connections and driven by multiple interfaces. We speak from the vantage point of 17 years of experience and a well-proven track record.Talk to ATS Services about how we can help streamline your debt collection efforts.
