How You Can Strengthen Your Debt Collection Process With AI

How You Can Strengthen Your Debt Collection Process With AI

The debt collection process in South Africa comprises an array of methods that can often be quite long and daunting. This usually involves phone calls, emails, and potential court proceedings. All consumer collection agencies in South Africa are required to adhere to the Debt Collectors Act. As such, there are certain conditions that you shouldn’t violate while collecting debt from customers.
There have recently been lots of harassment incidents from debt collectors in South Africa. This is due to some of the current inefficient communication methods that debt collectors use. Getting customers to pay can be a challenge, but using technologies such as AI can help streamline the debt collection process.

“The effective use of AI can help reduce delinquency rates (the percentage of loans that are past due) by about 76%” – PYMNTS.com

Photo by Mikhail Nilov from Pexels

When Do You Need to Change Your Debt Collection Process?

If you’ve gotten nowhere with your debt collection efforts, then you need to change your strategy. Here are some signs that show that you need a change:

  • Your new customers don’t respond to your first attempt to collect the debt.
  • You’ve agreed on a payment plan, but the customer doesn’t follow through on the process.
  • The customer makes unfounded complaints about your services as an excuse to get out of paying the debt.
  • The customer has a financial irresponsibility history.

If your phone calls, emails, and other methods are ineffective, then you need to streamline your operations and take a more effective approach. This is where AI comes into the picture.

How AI Can Streamline Your Debt Collection Process:

Winjit’s AI solution can make it simple for you to tailor strategies to individual debtors. This is a responsive web solution that you can operate from your mobile device or PC. It helps you create profiles to better understand the debtor and find the right ways to resolve the debt.

In addition to this, here’s how Winjit’s AI solutions can improve your debt collection process:

– The AI algorithms can identify the correct medium for communicating with the customer and show you how frequently you should follow up. Moreover, the solution helps you predict customer behavior and lets you determine the best time to reach out to customers.

– The solution’s Intelligent Machine Learning modules predict the chances of recovery and the expected recovery time.

– The AI solution offers integration with CRMs, Loan management systems, and other in-house applications. It also integrates with third-party apps such as IVR Telephony and Whatsapp Business API to streamline your communication efforts.

– Winjit’s AI-powered Debt Collection Chatbot serves as an additional communication channel that enhances customer experience.

Conclusion

As a business owner, you can streamline your debt collection strategy by implementing AI solutions. Making the debt collection process less painful will ensure that you retain a positive relationship with customers.

Winjit’s intelligent debt recovery solution, powered by the CollectSense practice, delivers higher Promise-to-Pay (PTP) rates. This is achieved by streamlining the collections processes and improving operational efficiency. This helps you ensure better collection, bad debt reduction, and faster resolution of collection disputes. Contact us to learn more.

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