To put it simply, those who know more achieve better results. What sounds like a mantra for nerds is in fact true: having an overview as well as good knowledge of and insights into the current situation ALWAYS helps you to make better decisions. This is even the case in the debt collection world.
Those who understand debtors and are familiar with their situation have a better chance of receiving outstanding debts. This is because it’s possible to meet debtors where they are and support them in a respectful manner with personalised payment plans to settle their debts quickly and in full.
Sustainable debt collection is debtor-friendly, individually tailored, customer-centric, efficient and cost-effective. In the end, this modern form of receivables processing is more sustainable and successful than traditional approaches. Learn more about the new AIO Collection Check and how it will facilitate data-driven, sustainable debt collection in the future. It also includes a customer-oriented payment solution!
What Is the Digital AIO Collection Check?
The key to unlocking this knowledge is the Digital Account View, which makes it possible for collection agencies to quickly analyse the customer’s account data and thus generate a very accurate and meaningful financial overview in real time. This includes categorisation of income and expenses and their respective designations, as well as those of certain risk characteristics.
FTS offers access to most banks in the DACH region via its Open Banking Platform. In fact, many of them have been using the Digital Account View as a decision-making tool when granting loans for a long time.
It’s important to know that the Digital Account View, just like the use of Open Banking and any kind of artificial intelligence in general, is always fully compliant with regulations. The collection agency can only view the customer account and process the data once the account holder has granted their explicit authorisation.
How Does the Digital AIO Collection Check Facilitate Debt Collection?
The new fee regulation that comes into force in October 2021 is motivating the collection industry to optimise collection processes in the short term. After all, they want to make sure they’re ready for the future. Two aspects are of central importance here:
- Digitalisation: As a result of the fee regulation, collection agencies will have to prepare themselves for profit reductions one way or another. The aim here is to compensate for financial losses by minimising costs. In this regard, using Open Banking in accordance with PSD2 can help save resources and reduce costs.
- Customer focus: Engaging with defaulting customers and meeting them at eye level offers two immediate advantages:
- Customer acquisition is time-consuming and rather expensive. By contrast, retaining existing customers is absolutely worthwhile, even if they have temporary payment difficulties. As the customer of the collection agency, the client would also be pleased if the individual remained a customer of their company.
- Customers are not often insolvent per se. They occasionally need help or a bridge, which can come in the form of an installment plan. You can optimise this accordingly using the Account View, ensuring that hardly any installment payment cancellations occur.
Digital tools and innovative Open Banking products such as the AIO Collection Check (in the PSD2 environment) can create payment offers that are more targeted and customer-specific than before, based on meaningful and concrete data in real time.
In addition, the AIO Collection Check helps you to assess the success potential of renewed reminders and to determine the best time for payment reminders as part of the segmentations prior to subsequent collection steps. What’s more, the Account View clarifies the efficiency of initiating judicial collection proceedings.
The AIO Collection Check brings several benefits compared to the offerings of credit agencies. For example, its statements are completely up to date, while it also impresses in comparison with other creditworthiness databases, which usually don’t contain income data and cannot map a lot of other additional information provided by the AIO Collection Check.
The Icing on the Cake: The Digital Payment Solution PayPerCode
In order to be up to date and customer-friendly, you need simple methods for payment processing on mobile devices and an excellent selection of suitable payment methods. PayPerCode brings both of these aspects together: the request for payment reaches customers via email, SMS or WhatsApp. Depending on their preference, they can initiate payment directly by clicking on the payment link in the message or scanning the QR code on the reminder letters.
The payment process then starts immediately. Due to the high level of convenience offered by this form of payment, conversion rates are very high. Invoices are opened and paid much more quickly than on average, which helps to significantly reduce the DSO.
Knowledge Helps Everyone: The AIO Collection Check Pays Off
In the end, it’s greatly beneficial when all sides reap the benefits.
The AIO Collection Check provides concrete, meaningful data for making decisions about how to ensure an optimal reminder process and provide a successful installment plan in the long run. Digital payment solutions such as PayPerCode have a high level of acceptance amongst debtors and facilitate prompt payments in full that can be quickly assigned to the respective debtor account.
This way, debtors have the opportunity to pay within their individual means, creditors get their money back quickly and reliably, and collection agencies are ready for the future thanks to increased efficiency.
Make the most of this knowledge edge now!