Transforming debt collection: a digital solution for enhanced customer engagement and operational efficiency

Introduction: 

The collections team at a leading Tier 1 UK bank experienced significant strain due to external and internal factors.

• Rising demand for financial assistance from the customers due to the ongoing cost-of-living crisis.
• Growing stage retention concern due to higher attrition rates, recruitment challenges, particularly in the post-Covid labour market.
• Traditional collection methods proving less effective, weakening the overall collections strategy and operational
  performance, with a noticeable decline in customer engagement and reduction in promises to pay (PTPs).

Goal:

• Deploy a solution that alleviates resource constraints, improves customer engagement, and restores the effectiveness of its collections’ strategy.
• Improve effciencies and reduce operational costs by modernising collections processes and empowering customers
  with self-service capabilities

How we made it happen:

Tech-enabled

Digital debt collection solution designed to optimise customer engagement and improve operational efficiency:

• User-Friendly Self-Service Portal: A simple, intuitive portal that empowered customers to manage their debt independently.
• Persona Based Segmentation: Emotionally intelligent messaging based on customer personas to improve debt recovery.
• Targeted Engagement Triggers: Communications begin when customers are 14 days past due, offering personalised offers and directing them to a self-service portal.

Seamlessly Integrated

To ensure seamless communication between all parties, providing a continuously updated view of the customer:

• First Party White Label Solution: Designed and customised to the bank’s requirements
• Personalised Contact Strategy: Tailored communications based on customer preferences (channel, time, and day) with an empathy-first approach.
• Real-Time Reporting & Fund Remittance: Daily updates on key metrics like open rates, click rates, and cash collected, along with daily remittance of funds back to the bank.
• Hybrid Data Sharing: APIs and flat files enabled seamless integration with the bank’s systems in real-time where required.

Personalised Powerhouse

Helped client managing increased demand and improving operational efficiency:

• Operational Efficiency: The digital solution enabled the bank to manage the increased volume of collections without needing to recruit additional staff. This led to cost savings and more efficient operations.
• Improved Self-Curing Rates: The bank saw an increase in the number of customers resolving their debt independently through the self-service portal, demonstrating the effectiveness of the digital engagement strategy.