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FICO survey shows banks prefer letters but consumers prefer SMS and email

SYDNEY, Australia — November 22, 2017

“Stop posting us letters when we miss payments and start texting or emailing us.” That was the resounding message from Australian consumers in a new survey on lender communications by Silicon Valley analytics firm FICO. While 18 percent of respondents said credit grantors send late-payment reminders via the mail, only 6 percent prefer that channel. The top preference in Australia was for SMS messages (39 percent), with email following at 30 percent.

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Lenders should respond to consumers’ preference for SMS reminders

SAN JOSE, Calif. — November 21, 2017

A new survey of consumer attitudes on lender communications by Silicon Valley analytics firm FICO found that even in this digital age, US consumers still expect a mix of automated and live communications with their creditors. Lenders cannot assume automated reminders alone would prompt all customers to take action effectively. They should optimize their automated communications strategy so that they can free up their call center resources to reach customers who respond better to a live caller.

Lenders have a new opportunity to reach customers faster using SMS. A third of respondents said they prefer SMS late payment reminders but only less than 15 percent of respondents receive one. However, lenders should clearly understand the functions and limitations of their mobile strategy. For example, mobile apps are still not consumers’ preferred method of making late payments (12 percent), despite the popularity of SMS as reminders.

In addition, live contacts continue to be important for some borrowers. More than a quarter (27 percent) of the respondents said they are more likely to respond to a live contact regarding a late payment than even a restructuring or reduction of their debt (8 percent).

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FICO survey shows banks should rely less on letters, more on digital communications

TORONTO, Canada — November 21, 2017

Canadian consumers are telling their banks to embrace the digital age. That was the message from a new survey on lender communications by Silicon Valley analytics firm FICO. Fourty-three per cent of respondents said they would prefer to be reminded of late payments by email, followed by text message at 21 per cent. But often their banks are sending them letters (26 per cent) or contacting them by phone (14 per cent).

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