Blog author Daniel Melo discusses how digital strategies are revolutionizing collections in a new article for InsideARM. Here's an excerpt:
It’s fair to say that consumers don’t like dealing with collections agents. That’s not to say that most of them don’t or won’t pay their bills, but rather that they simply don’t like getting the collection calls.
Providing the means for customers to get up to date without dealing with an agent can be far more effective than traditional methods in terms of both collection rates and costs. Being able to pay over the Internet, through a mobile app, or via text message are very important ways to enable customers to manage their payment plans, especially for customers who are embarrassed and don’t want to speak to agents.
Today, however, very few lenders offer digital solutions that enable their customers to manage their payments via alternate channels such as mobile payments. But digital strategies can dramatically improve collections performance. While providing a more personal channel that gives customers more control, an integrated digital strategy delivers significantly better results, including reductions in call center volume, faster customer response, increases in collection rates, higher customer satisfaction, and lower costs.
Read the full InsideARM article, "Digital Strategies Revolutionizing Collections."