Debt collection is definitely not the most tempting field of the financial services industry. To be more precise, if not done properly, it can be even obnoxious for both sides — creditors and customers. Traditional approaches, unfortunately, fail to fulfil the requirements of the digital era, mainly because of obsolete communication channels, lack of modern software tools, and inefficient process handling.
Therefore many businesses find themselves before a tough trade-off: use traditional debt collection and risk image loss or try and collect receivables on their own, losing cash, due to missing expertise.
The main danger lies in the creation of a downward spiral in the development of their customers’ base:
Where is the exit from the spiral?
In our previous article, we dig into the 6 main problems of traditional debt collection practices and discuss why classical collection agencies still struggle with the adoption of newly available methods.
In this one, we are focusing on an effective solution, offered to us by the digital age — technology. It is the key to the changing face of debt collections, offering companies the prospect of achieving more than ever before, without depleting their organisational resources.
Here are the practical solutions to all of the above-mentioned problems as we see them at eCollect®:
Digital communication
The internal and external communication of eCollect® is mainly automated and takes place via digital communication channels. This allows us to significantly reduce time and cost of each communication step.
Web-based software solutions
The use of web-based software solutions, and thus the collaboration in the “cloud”, eliminate the need of a physical office in every jurisdiction and enable the use of innovation on a global scale. We are there, where our partners and customers are: Available at any time, online, via phone or chatbot.
Automation using AI
We automate processes using Artificial Intelligence in order to ensure an efficient receivables management: processes, that used to be expensive, time-consuming and prone to errors, are now fully automated and accurate. The advantages of automated procedures and intelligent systems are obvious:
- Processing incoming information millions of times faster than a human being. This means a huge increase in efficiency and scalability.
- Ensuring compliance with legal and client-specific parameters (for example, jurisdiction, currency, amount of dunning fees, language, specific customer data, etc.). This minimises human errors in processing and communication.
- Access to the complete history of every case (incl. communication between all related parties and carried out actions), which allows for a consistent and accurate processing of every receivable under management. Additionally, it evaluates independently the constellation between the incoming communication events and the current receivable status and triggers the next possible processing step.
Easy integration
Let’s not forget that businesses have already invested in technical infrastructure. The introduction of new technology is as good as the possibility to “dock” it on already existing systems.
A comfortable web-interface and an easy-to-implement API allow the transfer of receivables automatically or over a few simple steps. The entire workflow can be constantly monitored, tracked and if necessary influenced by the creditor in real-time using our Client Dashboard.
Legal and compliance
Technology and professional legal expertise go hand in hand. eCollect® has been a member of the Association of Swiss Debt-Collection Agencies since 2014 and carries out its activities in accordance with the association’s code of conduct. Our qualified legal experts monitor the compliance with the country-specific regulations, regularly update the process flows and set the company’s guidelines for the proper collection of receivables in the respective country.
To sum it up
Receivables management has become customer-centric and can be viewed as an integral part of the business-client relationship. New developments in technology and communication present companies with opportunities to stand-out and gain an additional competitive advantage.
As a receivables management partner, eCollect® relies on optimal processing, which equally represents the interests of the creditor and their customers. Using both in-house developed automated workflow and manual control procedures, we examine the reliability of our clients and the legitimacy of the claims and therefore form the communication with end-customers with high professionalism.
So, forget about working with multiple providers, struggling with manual data processing and dealing with non-transparent pricing! Benefit from a fully integrated “feel-good” solution and concentrate on what you can do best — offer great products and services to your customers!
Find us at www.ecollect.org
Author: Yuliana Lefedjieva, Corporate Communications Manager
