Optimize your post-forbearance recovery strategies with data and analytics [sponsored]

Optimize your post-forbearance recovery strategies with data and analytics [sponsored]

The COVID-19 pandemic has created unprecedented challenges for the debt collection industry, including new regulatory rules, changing consumer demands and a potential increase in activity as forbearance comes to an end and carryovers decrease. The pandemic continues to affect everyone’s life and, with inflation and market fluctuations, the only thing that is certain is continued uncertainty. As lenders and third-party collection agencies plan their next steps, a solid assessment of debt collection processes should be a mandatory starting point.

In such uncharted territory, the more tools you can deploy and optimize, the more likely you are to achieve high rates of return. Therefore, leveraging the best market data and analytics, coupled with innovative solutions, is essential for your collections roadmap. Using data to automate and streamline, while strengthening your approach to identifying and mitigating risk, can put you on the right track.

Your overall strategy should focus on the following areas:

  • Leverage the best digital data and solutions available
  • Increase the agility of your end-to-end debt management process
  • Use tools and services that keep you up to date with regulatory developments

Customizing your approach can help minimize losses, optimize resources and maintain relationships, so you can collect debt faster and improve cash flow. Higher quality data and analytics provide a more complete view of consumers, which can lead to higher recovery rates, when deployed tactically throughout the collections lifecycle. To do this, let’s expand on the above concepts.

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Access the best of data and digital technology

Data providers have a wide range of digital solutions created exclusively for the collections industry and its unique needs at every phase of the collection journey. For example, collections management software, skip tracking and contact information tools using advanced analytics can help identify, prioritize and help contact and communicate with consumers. Combine them with other digital options that help process and monitor, and you can scale your collection processes to be as smooth as possible for your staff and consumers.

Solutions that provide optimal visibility into consumers’ overall financial situation can enhance risk management efforts. The deeper your insight into the consumer, the stronger your prioritization information. When you better understand and respond to consumer needs, you can take action earlier to prevent chargebacks and collect higher amounts.

With the proliferation of digital devices, contacting consumers at the right time, through the right channel, can improve their experience and increase the likelihood of cooperation. Collections should be viewed as an omnichannel opportunity that can translate to better return rates and less consumer stress.

Increased agility in end-to-end debt management brings value

A lack of investment in the latest solutions can leave your business struggling with severely outdated technology and processes and leave little room for customization or optimization. Suppose you need to develop new payment or forbearance tools? Or maybe you need options to help you react quickly to fluctuating market conditions? There are solutions that will help you stay agile and profitable in the face of these variables.

Solutions that use machine learning and artificial intelligence are transforming the way debt is collected, and leveraging these tools effectively is crucial. These technologies can analyze massive amounts of data from a variety of sources and deploy algorithms to improve existing processes and capture new insights into delinquency risk and manage vulnerable accounts. Taking advantage of all the advantages available can set you apart from your competitors.

Find options to comply with and manage regulatory changes

One of the biggest challenges for collections is adapting to an ever-changing regulatory framework. When you can assess emerging vulnerabilities and update policies, you can better respond to market changes and changing regulatory requirements. Make sure your debt management strategies are fair and compliant with all regulations and policies in place with the latest solutions.

From superior data to innovative compliance solutions, an industry partner that offers a range of options across the debt management lifecycle can help strengthen your bottom line.

Connect with a partner with industry-leading data and technology and deep industry experience

The uncertain economic environment continues to impact the collections industry. Faced with ongoing compliance requirements, changing consumer demands and an expected increase in collection volumes, debt collection services and agencies are navigating an ever-changing industry. Fortunately, there are opportunities like never before to harness innovative solutions to minimize challenges and reap benefits as we enter the next phase of our global economy.

Experian is committed to providing its partners with the best available solutions and personalized customer service to optimize your efforts at every phase of the collections lifecycle. Revamp your strategies today with a trusted, industry-leading data and analytics partner to prepare for tomorrow.

Valerie J. Wallis