Lowering interest rates and making borrowing easy were essential for bracing our communities through the pandemic. But cheap money isn’t free money. 29% of Americans have debt in collections. Collection rates remain at a historic low average of 20% in the US. Businesses cannot afford to lower their guard on getting paid. Moreover, new hurdles are looming such as the end of the CARES Act pause on student debt payment in January 2022 or the new Fair Debt Collection Practices Act (FDCPA) rules that took effect last month.
The pandemic has boosted the transformation of collection operations. They grew heavily dependent on technology, triggering a renewal cycle. As we move into 2022, 5 topics need to be on your agenda to digitize and modernize collections:
Data-driven strategies – adopt rich data models to break through legacy segmentation based on past due amounts and dates and factor behaviors and propensity models
Omnichannel outreach – leverage digital channels in your engagement mix to maximize right party contacts (RPC) through multi-touch, multi-channel outreach sequences
Agile workflows – empower your collections department to tune and adjust engagement workflows to optimize automation and success rates
Collaboration and compassion – equip collectors with the full context of customers to assist those facing financial distress and ensure the collection experience doesn’t impact repeat business or erode loyalty
Brand trust – comply with the ever-evolving array of regulations to respect customer privacy and preserve your brand reputation and trust
Explore how Acqueon for collections can help you address these goals