Aug 04, 2023
While asking customers to pay overdue for their debts has always been a challenge for businesses. And in today’s fast paced world, customers demand flexibility and accessibility to pay their debts, this leads to an increased number of late payments and ignorance.
Late debt payments can severely affect the liquidity of several firms, forcing some firms to exit the market. To tackle this problem, AI automation has been implemented for a few years now and AI has disrupted the debt collection process.
Even though AI automated debt collection systems are essential for businesses, do they replace human debt collectors?
Let’s find out…
A debt collection system is designed to streamline and automate the process of collecting outstanding debts owed to a business or organization.
While the human debt collection process is proved effective in collecting outstanding invoices from debtors, the strategies implemented are outdated and complex. Ideally, debt collection processes must be customer-oriented and a lot less painful to the collection agencies.
AI Automated debt collection can exactly do that.
AI is enabling companies to use advanced analytics, behavioral science, and machine to seamlessly automate their debt collection strategy.
In this blog, we’ll explore how you can make use of an AI automated debt collection system and seamlessly implement it for your business thus encouraging your customers to pay on time, increasing cash flow, and less losses.
By introducing AI into your existing debt collection system, you can ease the process of debt collection resulting in higher revenues and reduced operational costs.
Step 1: Launch voicebot/chatbot with an easy-to-use no-code platform – Floatbot.AI
Step 2: Run campaigns for debt collection by providing details of customers such as due amount, due date, etc.
Step 3: AI Bot connects with customers and tries to take inputs on the issues they are facing for debt payments and reminds them to pay asap.
Step 4: The bot sends timely reminders to the customers and ensures the payments are done on time.
Step 5: Engages debtors through communication channels like Email, Text, and WhatsApp
We're overcoming one challenge using AI: Debtor's Experience
And this particular factor is crucial; to make your customers choose your service over others.
Deliver personalized and empathetic communications with the right payment option at the right time and channel using Gen AI.
Yes, there’s so much more than AI in automating debt collections and enhancing the overall experience of your customers.
As per industry reports, “the use of generative AI has increased debt recoveries by 65%. A Gartner study also suggests that call centers globally can save as much as 80 billion dollars in revenue by 2026 using generative AI.“
Gen AI empowers debt collectors with automated, intelligent, and effective consumer conversations at scale.
Let’s see how a Conversational and Generative AI impacts your collections’ efficiency and revenue.
Using data-driven ML solutions, Gen AI provides insights into customer behavior, and history and helps lenders build borrower profiles to predict who resolves delinquencies and who needs an alternative approach. This practice strategically reduces revenue losses.
Reach out to the debtors on their preferred platforms such as email, voice call, or text by following an omnichannel approach to optimize the impact of the collection process.
Gen AI with the power of Artificial Intelligence (AI), Machine Learning (ML) and Natural Language Processing (NLP) analyzes structured and unstructured data in real-time to predict the defaulters. Lenders can create recovery plans and monitor borrowers -- likely to default.
Collection agents can also identify the right time and right medium of communication, which results in a faster response rate and improved collection rates.
Conversations with human agents might lead to discomfort for your customers whereas AI-powered bots gather information about the debtor’s payment history, their preferred modes of communication, and importantly their intent to pay.
These AI-enabled voicebots/chatbots are capable of interpreting the purpose of customer inquiries and responding accordingly.
These automated bots share reminders regarding upcoming and overdue payments without human intervention.
Voicebots and chatbots can handle multiple queries simultaneously.
You can also build automated workflows that can trigger automatic conversations along with personalized payment links so that the debtor can complete the payment at a convenient time.
This process is extremely beneficial for both debt collection agencies as well as borrowers.
Also, customers can engage anytime, anywhere.
LLM agent tools like ChatGPT, Google PaLM, and Agent M can be trained and automated to interact with defaulters and send reminders about outstanding payments. They can be used to personalize the customer experience by communicating with the debtors' preferred channels.
If you’re a debt collection agency looking to acquire new customers, automate the debt collection process and get rid of manual traditional processes.
Here’s how you can get started with building a chatbot/voicebot to collect the debt.
Let’s understand Floatbot’s human-like debt collection using chatbot/voicebot.
Floatbot is a low-code, conversational AI platform that helps businesses to build Chatbots and Voicebots.
With Floatbot, you can deploy chatbot/voicebot to
Communicate in multiple languages and reach every customer around the globe, in a friendly and human-like approach.
Automate hundreds of calls at once and transfer call; when an agent intervention is required.
Also enable multi-channel support and reach customers on their preferred platform thus ensuring a positive customer experience and engagement.
If you’re wondering about the hidden costs involved in automating debt collection process. You don’t have to, simply sign up on Floatbot’s website and you’ll be ready to build, launch and deploy AI automated debt collection bot within few clicks.
While the processes in AI automated debt collection system seem out of the world and can put behind your collection agents, there is still a need for human approach when complexities arise.
Hence, a mixed approach that effectively encourages AI automated debt collection and human interaction -- leads to healthy and positive relationship between you and your customers.
Get started with a free trial and empower your agency with automated debt collection using AI, ML and NLP.