3 Ways Conversational AI Aids Collections & Customer Support

Leveraging advanced technologies like conversational AI can significantly improve customer experience, collections effectiveness, and operational efficiency. According to a report published by Gartner, by 2026, contact center interactions using conversational AI will increase tenfold, making it the most used customer service channel. 

I recently interviewed FICO expert Russell Lilford for a short video explaining how financial services organizations can revolutionize their approach to financial support, to the advantage of both the organization and their customers.

Russell identified three key ways conversational AI transforms collections and financial support:

1. Scalability and Efficiency

Conversational AI enables financial institutions to manage large portfolios of customers more effectively. Traditional methods, such as manual dialling or outdated dialer technology, are not sustainable for handling high volumes of customer interactions. By using conversational AI, organizations can intelligently segment customers and automate outreach processes, leading to substantial operational benefits. At the same time they can focus their human agents on those cases most in need of a personal touch. This approach ensures that institutions can scale their debt recovery efforts without compromising on quality or efficiency.

2. Personalized Customer Engagement

Effective communication is not just about reaching out to customers; it's about doing so in a personalized manner at the right time, with responses frequently needing to be in real-time. Conversational AI allows financial institutions to tailor their interactions based on individual customer preferences, ensuring that messages are delivered at the right time, with the right tone, and with relevant content. Personalized engagement increases the likelihood of meaningful responses and successful resolutions, enhancing the overall customer experience. 

3. Omni-Channel Engagement

Combining conversational AI with an omni-channel contact strategy amplifies its effectiveness. Whether through push notifications, SMS, voice, or WhatsApp, delivering personalized and automated messages across multiple channels ensures that customers can engage in their preferred medium. This comprehensive approach not only improves the financial support processes, it also provides a seamless and convenient experience for customers, fostering better relationships and outcomes.

While the benefits of AI-powered technology are clear, Russell also talked about the necessity to manage the transition to this technology responsibly. 

To ensure the responsible use of conversational AI, it is crucial for banks and financial institutions to select a partner with an AI roadmap that supports responsible AI practices. This includes using AI to understand customer intentions and map them to appropriate responses, rather than allowing AI to generate its own responses without oversight. Additionally, businesses should ensure that AI systems are secure, respect customer privacy, and that the business remains accountable for the AI systems used.

By the integration of conversational AI into their operations, financial institutions can achieve greater efficiency, personalized customer interactions, and a cohesive omni-channel strategy, ultimately driving better results for collections and financial support.

How Conversational AI Works Within FICO’s Omni-Channel Engagement Capabilities

• Find out more about FICO’s omni-channel engagement in FICO Platform
• Discover FICO’s solutions for collections
• What should collections operations do next to improve – view the Expert Spotlight
• Read the blog: How Conversational AI Boosts Collections as Delinquencies Rise
• Read the blog: How compassionate digital collections can improve your bottom line