Financial Services

10 Takeaways From Our “Transforming Debt Collections and Recovery Functions” Podcast

Debt Collection Strategies Podcast Wba Wp

Collections Strategies Webinar

Scott Albahary, Perficient’s financial services chief strategist, and I recently spoke with the Western Bankers Association about using empathy and personalization strategies to improve debt collection and recoveries.

If you get a chance, listen to the short episode. But, if you can’t, here are the key points Scott and I make:

  1. Banks responded generously to support their customers’ debt hardship needs through the pandemic, but programs are ending.
  2. Government relief programs and stimulus payments have been successful and have expiration dates; the time to prepare for the aftermath is now.
  3. Economists are predicting a wave of delinquencies and bankruptcies soon.
  4. Collections and loss mitigation functions have historically had underinvestment in terms of technology – banks should ask, “Can I afford not to any longer?”
  5. Retention and brand loyalty can be improved by helping to resolve delinquencies for customers.
  6. Omni-channel allows you to humanize the experience with infusing technology to critical points.
  7. Automated technology tools are becoming a preferred method of interaction, and investing in them can result in up to 92% promise acceptance.
  8. Banks can market their payment program debt relief options proactively and leverage automated tools to guide customers through the process.
  9. Human interaction should remain a key focus for banks; however, not every customer prefers that type of interaction and is causing some to ignore their responsibilities.
  10. Connecting humans and digital technology can lead to a welcome adoption by customers vs. forced experiences.

 

 

About the Author

Byron Gifford is Perficient’s lead business consultant for financial services. With an extensive background as an executive leader in the banking industry, Byron has helped several banks improve their loan losses, increase customer retention, and reduce operational expenses through modernizing their collections and loss mitigation process engines. Byron specializes in developing innovative and dynamic contact strategies, creating cultures that deliver a relentless focus on enhancing the customer experience and retention, and implementing automation for business manual processes.

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