How Does Automated Debt Collection Work? 

Amicable debt recovery typically involves similar or identical actions, all aimed at the same goal: complete debt repayment in the shortest possible time. Automated debt collection is an extremely effective tool, providing invaluable support to consultants specializing in pre-collection. It allows employees to maximize their work efficiency by bypassing all repetitive steps and focusing only on the most critical aspects, such as setting specific repayment dates. Automation relieves the collection department and, in some cases, can completely replace it. How does automated debt collection work? What are the benefits of implementing this solution? 

Basics of Debt Collection Automation 

The efficiency of call center consultants, measured by the number of calls made during the workday, is very limited. Additionally, a significant portion of the day is spent on tedious verification and answering identical questions about the total debt amount and the payment deadline. This mode of operation is moderately effective at best. In most cases, the debt collection process is very similar. Of course, there will always be complex, multi-step cases requiring a consultant’s assistance but such situations are a small percentage of all debt collection processes, highlighting the importance of efficiently managing the rest. 

How Automated Debt Collection Works 

The automated debt collection process is tailored to the specific requirements of each company, allowing for modifications at every stage of implementation. This involves not only building message consistency but also maximizing simplicity, clarity and universality. Why is this important? 

Primarily because all customization processes aim to make automated debt collection even more efficient. Improved efficiency means not only a steady increase in debt recovery rates but also maximum support for the call center. Consultants who do not waste time on repetitive tasks can engage in more complex collection activities, also enhancing recovery rates. 

Effective Tools Used in Automated Debt Collection 

What can debt collection automation include? Each company can individually select, add or remove tools used during the debt collection automation process. 

• The first highly effective tool is detection, specifically voicemail detection. The platform automatically detects and terminates the call upon reaching voicemail. Implementing this tool from day one saves a significant amount of valuable consultant time.
• The second very useful tool is authentication, which involves authorizing a person or entity by providing necessary personal information. To alleviate the burden on the call center department dealing with collections, it is advisable to implement this tool as soon as possible. Authentication is distinguished by its high effectiveness, as the vast majority of individuals undergoing the authorization process complete the collection process.
• Debt collection automation can also involve exchanging specific data with other external systems, as well as accepting declarations of debt repayment by a specific date. Confirming the day on which the entire debt will be settled works psychologically and significantly increases the effectiveness of debt collection.

Debt collection call centers, particularly consultants, handle hundreds of calls daily, inquiring about the total debt amount and the maximum payment deadline. This process is so repetitive that it can be fully automated. An automated platform guides all interested parties through authentication and provides necessary information without needing a consultant. This guarantees mutual benefits: debtors receive information about their debts quickly, without long waits and call center employees are freed from repetitive processes that consume a large portion of their workday. 

Implementing Automated Debt Collection 

Modern automated debt collection platforms are highly effective and offer extensive customization options. Implementation is rapid regardless of the number of collection processes, and modifications, additions or removals of functionalities are intuitive and occur in real-time. 

Multichannel Communication for Successful Automated Debt Collection 

A successful debt collection process involves quickly contacting the debtor, setting and confirming a full repayment date and recording the payment. Automated debt collection can handle tens of thousands of contacts daily. 

• Multichannel Communication: This includes voice calls, SMS, VMS (voice mass messaging) and emails. If necessary, it also enables quick connections to a consultant, often concluding the collection process. 

• Efficiency: More communication channels lead to higher efficiency in collection actions. 

Even if debtors do not answer calls, statistics show that about 1/5 of them will call back. Additionally, a survey containing any questions for the debtor can be prepared in a few steps, such as the most convenient time for a consultant to call and present a proposal to conclude the collection process. 

Additional Benefits of Debt Collection Automation 

Another benefit of automated debt collection is IVR (Interactive Voice Response). An automatic voice menu, by selecting the appropriate digit, allows specifying, for example, the call topic. This means callers are directed to specialists who can help solve their problems, minimizing the number of transfers between consultants. This service guarantees that every incoming call is answered. 

Another significant benefit is the scalability of automated debt collection. A sudden increase in collection activities typically leads to a reduced number of contact attempts due to insufficient consultants, reducing recovery effectiveness. With automation, these problems do not occur. You only need to set a new number of voice calls, SMS, VMS or emails and the platform will immediately increase productivity.