25 Finance Monthly. Bus i ne s s & Economy shame in being in debt, originating in the power imbalance that exists between debt and borrower, stops many from seeking help. Each of these applications have started to redress this imbalance, placing more of the power with the traditional underdog in the relationship. By providing unintrusive collections that focus on allowing the customer to decide when, why, and how they are communicated with, collectors help break down the stigma surrounding debt. This is the compassion that Firstsource has been injecting into collections. Empowering borrowers lets them know they are valued and not judged, creating a collection service that is simultaneously more friendly and successful at its primary purpose. Real Proof Digital Debt Collection Works These aren’t just pretty words either, the benefits are already translating into real money for organisations that switch to empathetic digital debt collections. The statistics truly prove these methods are wholly more efficient than the traditional approach. The most tangible way of measuring debt collection success is of course through the money repaid. Clients that have implemented the white-label Firstsource Digital Collection Solution have seen resolution rates climbing by up to 400%, while at the same time collection costs drop by 3-4%. In monetary terms, this has resulted in close to £200,000,000 collected each year. Delinquency rates are also vastly improved. By providing individualised repayment plans, borrowers are far more easily able to meet the terms. This has led to almost ten million accounts being saved from becoming delinquent each year. And finally, digital debt collection has also helped boost collectors’ profits by improving productivity. The fully configurable and compliant software easily plugs into their existing stack to begin automated delivery, giving collectors complete control over workflows, processes, and communications. This mitigates compliance and operational risks and reserves employee manpower for more intricate tasks. Employers can use this productivity to scale up their organisations while reducing costs to help for more efficient future budgeting. Reshaping Our Perception of Debt For many, there has been little choice but to enter problem debt since the pandemic began. In some cases, whole industries have tumbled, and the fallout has hit everyday people the most. In response, the debt collection industry must take a holistic approach when dealing with borrowers. Empathy is a powerful tool that has for too long not been properly used by the industry. To reach the growth it strives for, the sector must not be afraid to change, and in this case, that means modernisation. But beyond that, digital debt collection is the best way, not only to improve profit and productivity but to reshape the way society sees debt itself. “Clients that have implemented the white-label Firstsource Digital Collection Solution have seen resolution rates climbing by up to 400%, while at the same time collection costs drop by 3-4%.” “Most people would not automatically link compassion to debt collecting.”
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