To remain competitive in today’s ever-changing economic environment, financial institutions, energy, telecom, automotive, utilities, and retail finance companies have each recognized the need to build a new collections model that utilizes advanced analytics to inform and drive processes.
Unfortunately, the collections industry has been relatively slow to embrace new techniques in analytics compared to other areas of organizations such as loan origination, as investment in the collections function is often overlooked in favor of projects that aim to grow the customer base. However, with consumer debt levels returning to 2008 recession levels (total household debt in the United States rose by $148 billion in Q1 2023, totaling $17.05 trillion), and the threat of challenging economic conditions on the horizon, collections centers are finally getting the attention they deserve.
In this article, Kathy Stares, Executive Vice President of North America at Provenir, examines new technologies available, how they can shape and enhance the collections process, and ways collections centers can utilize new technology to create win-win opportunities for customers and creditors.