At A Glance
Debt. For many, it’s a struggle – and a constant one. Successful third-party collections can be achieved by investing in the right data and technologies.While third-party debt collectors may take a more specialized approach to collections, they face unique challenges. Debt collectors must find the debtor, get them to respond, collect payment and stay compliant. With streamlined processes and enhanced strategies, lending institutions and collection agencies can recoup more costs.
Embrace automation
Automation, artificial intelligence, and machine learning are at the forefront of the ongoing digital transformation in collections. When implemented well, automation can ease pressure on call center agents and improve the customer experience. Automated systems can also help increase recovery rates while minimizing the risk of human error and the corresponding liability.
Maximize digitalization
Integrating and expanding digital technologies is mandatory for success in the third-party collections space. Third-party debt collectors must be at the forefront of adopting digital communication tools (i.e., email, text, chatbots, and banking apps), to connect more easily with debtors and provide a frictionless customer experience. A digital debt recovery solution helps third-party debt collectors streamline processes, maintain debt collection compliance, and maximize collections efforts.
Leverage the best data
Consumer data is ever-changing, especially during times of economic distress. Capturing accurate consumer information through a combination of data sources — and continually evaluating the data’s validity — is key to reducing risk throughout the consumer life cycle. By gaining a fresher, more complete view of existing and potential customers, third-party debt collectors can better determine an individual’s propensity to pay and enhance their overall decisioning.
Keep pace with changing regulations
With increasing scrutiny on the financial services industry and ever-evolving consumer protection and privacy regulations, remaining compliant is a top priority for third-party debt collections departments and agencies. The increased focus on regulations and compliance has also highlighted the need for teams to include debt collectors with soft skills who can communicate effectively with indebted consumers. With the right processes and third-party collection tools, you can develop a robust compliance management strategy to prevent reputational risk and minimize costly violations.
Finding the right third-party collections partner
In today’s climate, it’s never been more important to build the right third-party collections strategies for your business. By creating a more effective, consumer-focused collections process, you can maximize your recovery efforts, make more profitable decisions and focus your resources where they’re needed most. Our third-party debt management solutions empower your organization to gain a comprehensive behavioral, demographic, and emerging view of customer portfolios through extensive data assets, debt collection, predictive analytics, and innovative platforms.
