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