The regular inflow of cash is an essential requirement for the survival and growth of any business. Payment from invoices is one of the primary sources of cash inflow. However, many companies struggle with getting their invoices cleared from customers for one reason or another. That’s where debt collection services come into the picture.
What is debt collection?
Debt collection is the process of pursuing the payments or invoices owed by an individual or a business to your business. When you hire a debt collection agency, they chase and collect your unpaid invoices for you for a nominal fee.
Evolution of debt collection process
Over the past few decades, debt collection has evolved significantly. The emergence of the internet and various other technologies, like maintaining the accounts receivables electronically, has brought about multiple changes in how debt collection works.
Some of the most remarkable changes are still in progress and are not older than five years. These technologies have still not reached their full potential, and the debt collection industry must incorporate them fully into its operations.
Three technologies that can change the face of the debt collection process include:
We all know about smartphones, and nearly 80% of the global population uses them. The increasing use of smartphones opens various opportunities for the debt collection industry. Debt collectors can easily reach businesses and customers on their smartphones anywhere in the world. Using online payment methods through mobile applications also makes the payment process easier for customers, making it more likely for them to pay their debts quickly.
Mobile applications also enable debt collectors to work while on the go. They can track and manage their payment through dashboards on mobile apps. Update the status and do much more with the help of mobile gadgets.
Artificial intelligence (AI)
AI is taking over every industry, including finance, healthcare, IT, and others. AI in debt collection is also something that you can see soon. Using AI and machine learning, debt collection agencies can make predictive analyses. AI can process large amounts of data through algorithms to tell debt collectors which customers have a high chance of paying the debt or which customers would require more effort. AI also can provide virtual assistance to customers as chatbots to reduce delays and make the entire collection seamless and more efficient. It also helps increase the customer satisfaction rate for businesses.
Another innovative technology that the debt collection process can benefit from is Blockchain. Blockchain helps store vast amounts of data decentralized for enhanced security and better access to everyone authorized. Implementing blockchain can reduce the chances of hacking and financial fraud and give more options to customers regarding credit choices.
DebtCo is the only all-service digital collection company you need for payment collection woes. We have developed an innovative online digital debt collection platform that can care for all your collection problems, regardless of your industry. You can reach out to us at 01376 800 592 or request a meeting to know more.