The future is here for debt collection technology.
Is technology a good or a bad thing? The answer is it depends on how you use it. In the field of debt collection, technology is being used to improve the consumer experience while helping industries work smarter and improve their bottom line.
Here’s how the new way of debt collection technology is going to change the field – for the better.
Debt Collection Goes High Tech
Just like in every other industry, debt collection technology will prove to be an industry disruptor. The difference is that the industry is an established one, and changes can come more slowly to the field. But the influx of digital technologies and software-as-a-service (SaaS) tools has democratized debt collection technology in new ways that benefit both our customers and their clients. Some of the biggest innovations in the field include:
- Online dashboards allow clients and consumers to easily see data and respond appropriately.
- Automation improves the efficiency of daily functions.
- Omni-channel communications that have optimized the reach across email, text, mail, and phone calls.
- Data analytics tools that let debt collectors analyze consumer behavior.
- Predictive analytics to predict the future likelihood of payment.
- Better security tools to improve the safety of the data we house.
According to Forbes, the next wave of debt collection technology will include artificial intelligence (AI). But the article points out that most of the smaller collection agencies are currently failing to capitalize on debt collection technology:
“A tiny percentage of profits (from these firms) actually get reinvested into new technologies. As a result, the players in the industry resemble large dinosaurs, stubborn, resistant to change, and simply awaiting the arrival of the asteroid to usher in the next wave of evolution.”
However, it should be noted that since the industry is highly regulated, digital startups seeking to enter the field should tread carefully in their efforts to contact consumers by smartphone, email, or through other digital tools. That’s where a company like TSI, who has been in the debt collection business for years, has a competitive edge. TSI is one of the few companies in the debt collection industry that has invested significantly in debt collection technology.
TSI and CollectX for Data Analytics
TSI has developed CollectX, a proprietary predictive data analytics platform. It is a next-generation technology solution for the age-old problem of debt collection. The technology helps companies focus their collection efforts on accounts with the highest statistical probability of payment. We use CollectX to increase the revenue collected, decrease days in A/R, and do it more quickly for less cost.
Can the right technology improve your bottom line? CollectX is proof that digital technology can help the collections industry refresh outdated processes to get you more revenue more quickly. While there will always be a place for a skilled human touch to maintain the relationship you have with your client, CollectX is the next wave of tools we can leverage to improve your cash flow. Learn more today.