The Collections Function of the Future — A Customer-Centric Approach
This IDC Perspective examines the need for lenders to adapt to a new environment with customer-centric models that are compliant and achieve high overdue-payment recovery rates."With regulations on collections evolving and impacting the market, lenders must adapt to the new environment with more customer-centric collection models. A better and more frictionless collections process that uses modern technologies, such as AI-driven segmentation and persona creation, more efficient multi-channel client-outreach orchestration across various stages, and more precise communication and messaging will lead to higher recovery rates." — Research Director George Briford, Financial Insights, IDC Europe
Please Note: Extended description available upon request.
- Executive Snapshot
- Situation Overview
- The New Collections Value Proposition
- Adapting for the Future — Giving up Short-Term Gains for Long-Term Prosperity
- Effectiveness
- Cost
- Risk
- Customer Experience
- Overall Approach
- Current Conditions Ripe for Change — Reasons for Changing Now
- The Rise of Omni-Digital Consumers
- 24 x 7 Society
- Tech Innovation
- Rising Customer Communication Opt-Outs
- Lenders No Longer Able to Ignore Collections' Impact on Customer Satisfaction
- Escalating Emotions
- Contact Frequency
- Lack of Control
- Experience Timing
- Lenders — Tailoring Collections Approaches Based on the Risk and Reward Associated with Each Customer
- Low Expected Losses and High-Value Relationship
- Low Expected Losses and Low-Value Relationship
- High Expected Losses and High-Value Relationship
- High Expected Losses and Low-Value Relationship
- Transforming the Function
- Lenders — Focusing on Key Principles to Guide the Design of the Collections Function of the Future
- Personalized
- Accessibility
- Risk Based
- Proactive
- Data Driven
- Responsive
- Flexible
- Leading Practices in Collections to Support the New Value Proposition
- An Effective Integrated Messaging Approach — Among the Most Critical Components of a Successful Collections Function
- The Target Operating Model of a Leading Collections Function
- Proactive Pre-Delinquent Outreach
- Initial Communication Attempt
- Initial Triage/Assignment
- Ongoing Contact Strategy Adjustment
- Inbound Contact Management
- Offer Presentation
- Additional Borrower-Support Options
- Follow-Up
- Completed Payment
- Required Changes — Three Key Areas
- Borrower Contact Strategy
- Resolution Options
- Interaction Approach
- Advice for the Technology Buyer
- Learn More
- Related Research
- Synopsis
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