Debt collection has always been a critical aspect of financial management for businesses and organisations, especially with the cost of living crisis we are seeing around the world. Collecting debts can be time-consuming and expensive, which usually leads to strained relationships between debtors and collectors.
One solution to these challenges is automated payment reminders. In this series of blogs, we will explore why automated payment reminders will change the debt collection industry.
What are automated payment reminders?
Automated payment reminders are electronic notifications that remind debtors of their outstanding debt cases and encourage them to make payments. Reminders can be sent via many channels, from email, text message to text to speech and rich messaging. Reminders are sent out from dynamic workflows that can either be programmed to go out at specific intervals, or use machine learning to learn when the best time is to establish contact, and via what channel the debtor prefers.
Typical information is the debt, such as the amount owed, the due date, and even the consequences of non-payment.
Why do automated payment reminders matter?
For sure, they are proving to be a game-changer for any business that adopts a digital debt collection approach. Several reasons why are:
Automated payment reminders will increase efficiency
Debt collection agencies and businesses can automate the process of sending payment reminders, freeing team members from time to time to handle more complex tasks. Overall, we see that more than 50% of the payment reminder process is automated when using this approach.
It will improve the customer experience
Reminders can be customised to provide your debtors with the information they need to make payments on time. This has proven to reduce the frustration and stress associated with debt collection, and helps preserve relationships between debtors and collectors.
Reduced delinquency rates
We have seen that 40% reduces delinquency rates when using electronic notifications. Encourage debtors to pay on times via their preferred channel of communication reduces the traditional method of more aggressive collection tactics.
Automated payment reminders will increase your revenue
All of our customers have indicated they have seen an immediate increase in revenue when automating their payment reminders. It reduces the manual time spent collecting unpaid debts, with amounts coming in faster. The additional benefits have also seen a decrease in our clients' costs.
Compliance with regulations
Electronic reminders can help businesses comply with regulations related to debt collection. From the AFM in the Netherlands to the FCA in the UK. By providing clear and accurate information about debts, businesses can reduce the risk of non-compliance and potential legal issues.
To conclude
If you're looking to improve your debt collection process, contact us at FinView, where we can explain how our automated payment reminders deliver increased revenues for all our clients.
Who is FinView? We are a passionate tech company focused on delivering tools that help automate the debt collection industry. From workflows that deliver personalised communications to mobile apps that give your debtors all the control to manage their cases, our platform can help your business improve their recovery rates. Contact us to know more.
