Collection Technology Trends in 2022

Debt collection trends in 2022 can be summarized in one word: Digitization. Consumers are increasingly digitizing their personal finances with digital-only banks and digital-only payment options such as PayPal and Venmo. Add to this phenomenon the trend for younger generations that communicate primarily via SMS or social media apps and rely on person-to-person debt collection, and any other ways collect unpaid debts seem so, well, last century. Collections organizations will have to embrace these trends and meet consumers where they are currently living – on their smartphones.  

Capital Recovery places a strong commitment to using technology in our systems and processes, as we recognize the need to adapt to remain one of the top collections agencies in the country. Here are some of the ways our agency uses current technology to streamline our processes to offer better debt collection solutions for our clients.   

Online Payment Options   

Offering mobile payment apps for your debt collections is worth pursuing additional ways to collect the debts promptly. As digital natives, millennials are well-versed in using online platforms like PayPal, Venmo, Apple Pay, and Google Pay. A natural apprehension towards adding credit card information online or even the use of authenticated accounts makes collecting payment more difficult. By adding additional ways to collect a payment, you can increase the likelihood of recovering debt more efficiently. Additionally, the debt collections industry has become more dependent on technology due to the mandated regulations and restrictions. However, even with technology’s streamlined systems and processes, collections still require great precision and carefully articulated human interaction.   

Digitization for businesses across all industries is inevitable, even for older generations who may not be as comfortable with technology. In fact, according to Capgemini Research Institute, for those aged 61-65, there has been a 37% increase in digital payments and a 33% increase in digital payments among those over 66. This proves that even those who seem to be the least likely to embrace digital solutions are embracing them. And if more proof were needed for going digital, consider a recent McKinsey and Company study which found that customers who had access to digital options were more likely to complete their repayment in full.  

Automate   

Machine learning and artificial intelligence are also top trends for debt collection. One company, called Attunely, provides machine learning and artificial intelligence specifically for receivables management. Attunely offers a compliant platform and a suite of optimization models based on each company’s specific needs. This will help our team of agents focus on the accounts that have a better chance of success. Successful compliance management helps organizations protect their customers and minimizes legal risk. Automated compliance software has been shown to reduce errors from internal and external non-compliance.   

Ramp Up Self-Service Options  

If your organization hasn’t already, identify how your customers prefer to be contacted. Whether it’s SMS, email, or phone, determine your clients’ communication preferences and if their preferences reduce the need for person-to-person contact. Build options on your website or apps that allow customers to complete basic tasks like “Make a Payment,” “Check my Account,” “Register a Dispute,” etc., so customers can quickly address simple repayment issues. And as a best practice, always ask for feedback from consumers about their experience with your automation to ensure that system bugs are addressed and fixed.    

These are just a few of the tools that debt collections agencies can use to effectively communicate with the customers, patients, and organizations they serve.   

Learn more about how partnering with Capital Recovery Corporation can help your organization with past-due debt, maintain excellent customer relationships and restore credit. Contact us today to start a conversation and see how we can help your organization.