The collections industry is constantly changing as innovative technologies and consumer behaviours emerge. Here are some of the trends to watch in 2023.
- Increased Adoption of Artificial Intelligence (AI) and Machine Learning
AI and machine learning technologies are becoming increasingly sophisticated, allowing collections companies to automate many routine tasks and make more accurate and efficient decisions. This trend is expected to continue in the coming year, as more collections companies invest in these technologies to improve their operations.
- Growth of Digital Collections Solutions
Digital collections solutions, such as online portals, mobile apps, and automated phone systems, are becoming increasingly popular among consumers. This trend is expected to continue in the coming year, as more consumers seek the convenience and accessibility of digital collections solutions.
- Emergence of Omnichannel Collections Strategies
Omnichannel collections strategies, which involve using multiple channels to reach customers, are becoming more popular as collections companies seek to reach consumers where they are. This trend is expected to continue in the coming year, as collections companies seek to improve their reach and effectiveness.
- Expansion of Financial Inclusion Initiatives
Financial inclusion initiatives, which aim to provide access to financial services and credit to underbanked and underserved populations, are expected to expand in the coming year. These initiatives are important for promoting financial stability and economic growth, particularly in emerging markets.
- Increased Focus on Customer Experience
Collections companies are placing a greater emphasis on improving the customer experience, as they seek to build stronger relationships with customers and reduce the likelihood of disputes and legal action. This trend is expected to continue in the coming year, as collections companies seek to improve their reputation and customer satisfaction.
- Growth of Debt Purchase and Management Companies
Debt purchase and management companies, which specialize in buying and collecting outstanding debts, are becoming increasingly popular as more consumers seek to manage their debts and improve their financial stability. This trend is expected to continue in the coming year, as more consumers seek debt relief and financial services.
- Increased Use RPA
Robotic Process Automation (RPA) is a rapidly emerging technology that uses software robots to automate mundane and repetitive tasks, enabling organizations to reduce their workload and costs. The benefits of RPA are many, including improved accuracy, increased efficiency, and faster processing times. With RPA, organizations can free up their human workforce to focus on more complex and value-adding tasks, ultimately leading to improved productivity and growth.
- Emergence of Alternative Data Sources for Collections Decisions
Alternative data sources, such as social media activity and online behaviour, are being used by collections companies to make more accurate and personalized collections decisions. This trend is expected to grow in the coming year, providing collections companies with greater insight into the financial habits and behaviours of their customers.
- Development of Contactless Payment Solutions
Contactless payment solutions, such as mobile wallets and near-field communication (NFC) technology, are becoming more popular as consumers seek contactless, convenient, and secure payment options. This trend is expected to continue in the coming year.
- Growth of Mobile Collections Solutions
Mobile collections solutions, such as mobile apps and text messaging, are becoming increasingly popular as consumers seek the convenience and accessibility of mobile collections solutions. This trend is expected to continue in the coming year, as more consumers seek to manage their debts and finances on-the-go.
In conclusion, these are some of the trends to watch in 2023. As the collections industry continues to evolve, companies that stay ahead of the curve and embrace these trends will be well-positioned to succeed in the coming year.