- May 17, 2018
- Posted by: Phillip W. Duff
- Category: Uncategorized
As a consultant to the debt collection industry for the last 20 years I see the same issues over and over and the mentality of “this is the way we do it” has been the worst offender and the best money maker for my company. When did you last say it?
Are you ready to make your business fit the industry, your clients and your profit expectations? One of the biggest problems is the fact that debt collection did not change for many years. Debt collection remained the same with few changes in processes, technology or training for decades but began to change as technology created other communication channels. With emails and texting as a new communication channel, the industry began to change and then compliance changed it again.
Changes in technology began with the internet but are now driven by changes in overall technology like AI or Artificial Intelligence. The trend to use the collection systems to track and find the best communication channels for each account has changed the process of debt collection and made much of the business move to non human interaction collection channels. But the core of collections is still a phone call and this will never go away completely.
Changes in clients have been mainly driven by compliance requirements. As clients began to be more involved in the third party collection processes the process of collections was changed. Clients now have much more involvement these days in the process of collections than years before when the focus was just on liquidation rates.
Changes in staffing have occurred as the work force in the US has changed with generational challenges. The difficulty finding quality staff has also caused changes in the collection process as agencies move staff to offshore call centers to save money.
Now that there are changes in all the above categories the average collection agency has only changed as required by laws or clients, most have not invested in new ideas, processes and methods. This is what you must do to get ahead of the curve these days, agencies that can look at the collection process with fresh eyes and look for new processes, technology and staffing.
If you need help with these changes contact Lighthouse Consulting.