Technological advances have been hugely impacting the way we live and work for over two decades now. While not every advancement in technology is welcomed, some are greeted with open Debt collection agencies arms and the prospect that they will make our lives easier. This was especially true in early 2020 when the pandemic dawned on the world and we were required to adjust to our working lives, from the comfort of our own homes.
During this period, huge amounts of technology were adapted to ensure that many people could work seamlessly from home, with many manual jobs finally becoming automated through the use of technology.
Debt collection was no exception. The pairing of technology and debt collection makes it much easier for an agency to track down a debtor. Almost everyone in the first world has access to a mobile phone, making it much easier to get a hold of a debtor.
Debt collection agencies are continuously adapting to incoming technologies. Just as they adapted when email and mobile phones were introduced, they need to continue to evolve because ultimately it can quicken and ease manual processes.
There are three things that are required to successfully collect a debt:
- It must be a true and correct debt – that is up to the creditor.
- The debtor must have the capacity to pay the debt, this is helped by eCollect through payment plans, and statement of financial position from the debtor.
- The debtor needs to be able to be located.
Technological advances can help with every aspect that is required to successfully collect a debt.
However, the actual process of collecting debt can be facilitated through up-to-date technological platforms. Completely online systems, such as the platform adapted by eCollect during the pandemic, has allowed them to continue working remotely without any interruption to their business.
eCollect’s new technology and platforms take multiple forms. They have a platform that is used for managing the debtor recovery process and communication, including file notes and evidence. Secondly, they have a system that ensures they are keeping the creditors informed on how the debt collection process is going. Then then have a system that assists them in locating a debtor, in order to get in contact so they can pay their debts, and lastly, they have a system for accounting and invoicing.
These advanced systems can handle everything from debtor and creditor details, debts, mail and returns, internal communication and external information for creditors. It then frees up time for employees to do things that a computer system can’t. It not only simplifies the process, but it allows room for the process to become more organised and seamless. It presents a unique opportunity for debt collection agencies to put effort and power into what a computer system can’t do and differentiate themselves from their competition using this approach.
Though the process is simplified using technology and many people thankful for this, it is important to remember that there are areas with debt collectionthat can never go fully electronic. Debt collection needs to include a personalised aspect in order to have a higher chance of receiving debt from the debtor. The top debt collection agencies are the ones who recognise the positive impact that technological advances can have on debt recovery, but also know the limits of it within their field.