Collection, like many other industries, has faced difficulties due to the COVID-19 pandemic, constant technological changes, and, of course, the new dynamics of markets and customers.
Technology has taken on an indispensable role for those who are interested in continuing to work in this market, some of these advances applied to this industry may allow them to do more with less.
For example, one of the main advantages of technology applied to this industry may be that it offers the opportunity for greater certainty within the credit origination process and therefore faster recovery.
Debt Collection Agencies Overlook
A report by IBIS World in 2017 shows that a high rate of credit defaults in 2012 increased the demand for debt collection agencies.
The levels of debt in most categories, per the Federal Reserve, have been rising steadily since the fourth quarter of 2015. The fourth quarter of 2019 marked the twenty-second consecutive quarterly increase in total household debt, reaching $14.15 trillion, $1.5 trillion more than the pre-recession peak of $12.68 trillion in the third quarter of 2008.
From this information, we can say that, despite the minor setbacks that the industry has faced due to recent world events, the opportunities in this industry continue and will continue to grow.
This is why is essential to hold effective debt Recovery strategies, along with the right debt collection tools.
Three Major Problems that a Debt Collection Agency May be Facing.
Companies that have not yet decided to use technology applied to the collection, here are some insights into what they might be losing: Without a Call Center Software either Debt Collection Software, dial attempts have to be manually dialed, receiving on average 80-90% of the total attempts a no answer, a voice mail, or a busy tone.
Another disadvantage is the wasting time of entering the cell or phone number of each record. Let’s say it takes on average 15 seconds per record, so if they do 120 calls per day a Call Center with 40 agents on average will waste 28,800 minutes or 480 hours.
In addition to it imagine a manager of this 40 seats Call Center trying to oversee the real-time operation, how he can see if the agent is or not on his seat, if the agent needs or not help, and to many other situations without technology.
End to end solutions by Nuxiba.
- Agent’s productivity. Our systems are intuitive, so the learning curve for agents is much shorter. Plus, our systems allow agents to just click on the record they need to dial, connecting only those answered calls, saving an average of 720 minutes per month. Increasing agent productivity by up to 90%
- Real-time monitoring: Is one way of maintaining and guaranteeing call control and quality.
It allows detecting an improvement in communication processes, either on the end of agents or contacts or in the service scheme. Statistics show that the only fact to install a monitoring tool change people’s behavior over 20-30%.
Plus, another aspect of “live” monitoring is keeping track of agent statuses (ready, unavailable, away, etc.).
- Portfolio Coverage. Reducing agent’s downtime and automizing dialing task leads to cover the debt portfolio faster and more times.
- Income. Making more contacts on the assigned portfolio and touching each record more times lead collection agencies to collect more per agent and per call center, resulting in at least a 30% income increase.
- API Integration at no cost for Debt Collection Software. If they are using a debt Collection Software already, we offer a free integration to it.
- End to end solutions: Nuxiba offers SMS, Robocalls, and SIP Lines.
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