Debt Collection in the Pandemic: Compassion Is Critical to Success

The economic and financial fall-out following the turbulence of the past 12 months has highlighted the critical need for agility, flexibility and adaptability in unprecedented times. This is particularly true for managing debt collection in the pandemic.

It’s clear that being slow to react or tone-deaf to customers facing financial difficulty by delivering impersonal or threatening collections messages — while lacking the flexibility to find collaborative ways to solve your customers challenges  — is a quick route to loss of business and reputation.

It’s a simple fact that customers don’t forget how they’re treated – ever.

To win and retain the right to loyalty, a solid reputation and growth, it’s vital we all help customers through financially vulnerable periods.

A combination of pre-emptive portfolio analysis, carefully timed triggers, appropriate and well-managed contact and self-cure options, will always help the vast majority of your customers stay risk free and steer a path away from delinquency.

The top-performing lenders are already developing strategies for the new and emerging post-pandemic customer segments.

They have an action plan for any customers who may be at-risk of delinquency, alongside clear and well determined routes to enable them to renegotiate payment plans or moratorium options.

At FICO, we’re helping our strategic clients adopt this route with access to alternative data sets, the development of timely early warning systems, insight and advice on industry best practice.