Today’s reality sees the emergence of consumer debt, with delinquency rates rising along with the rapid growth of unemployment and underemployment. After the pandemic brought an exponential drop in the real earnings of the world’s population, consumer behavior is affected, with global economies experiencing several setbacks. The scale of unemployment will inevitably prove to be the biggest driver of customers’ ability to pay.
Given this, the global debt collection services market size is only projected to grow. Market Research forecasted the market size of collections agencies in the United States to rise, reaching 16.7 billion USD by 2025. Debt collection software is also receiving a healthy outlook, expected to reach 6.06 billion USD in 2028.
The staggering numbers show a great need for an effective collections strategy that harnesses the capabilities of digital business services, powered by the most advanced solutions that help organizations adapt to an ever-changing debt collection environment.
The Digital Advantage
The current trends in debt collection witness the rise of digital technologies that aid companies in redefining their collections strategy. In this scenario, the main drivers are personalization, self-service, data analytics, and AI – all of which are playing a key role in paving the way for frictionless debt collection processes. For example, data-driven debt collection can improve interactions between lender and borrower: through the use of insights and data, debt collection agencies can personalize their communications sent to customers. The role of AI – whether through chatbots, virtual assistants, or automated responses via self-service kiosks – is heightened, with more and more consumers finding them less intimidating compared to voicing their concerns to a debt collector.
In a competitive market, a strong collections strategy is the result of ensuring compliance and mitigating costs, addressing shifting customer behavior that favors digital experiences, and partnering with a global digital business services company that combines the most advanced solutions with data analytics and disciplined processes to help companies transform and run better.
At Teleperformance, we continuously help major providers all over the world in managing risks, reducing expenses, and enhance collections processes in a changing financial landscape. Our digital and analytical capabilities allow our clients to manage uninterrupted collections:
- TP Recommender: an AI-based analytics platform that provides propensity-to-pay and omnichannel segmentation-based collection models
- TP Cube: a collections-specific workflow and dialer platform that can incorporate predictive dialing models
- TP Interact: a suite using the latest Interaction Analytics technology, capable of analyzing data from multiple channels
- TP Voicebot: an AI-based conversational platform that enables enterprises to automate conversations
- Payment Gateway: A mobile-friendly, web-based portal that allows customers to view their payment history and request receipt via email
Modernize your debt collections strategy to lead the race with Teleperformance! Contact us today to learn more about our collections services.
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