Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.
In PART 1 of this two-part series, we explored how the current socio-economic climate resulting from the lingering financial hangover caused by the pandemic is negatively impacting the consumer's ability to settle a debt.
It has been a year and a half since the first case of the coronavirus (COVID-19) was reported from Wuhan, China. As we move into the third wave of the virus, there is an apparent dilution in both collection and recovery yields in the financial services sector, primarily because relief schemes and packages come to an end.
We all know the importance of technology within the call centre … or do we?
Principa Decisions (Pty) L
Principa Decisions (Pty) L
As most of you may know by now, we are currently busy with a series of Q&A videos, so please feel free to send us your credit lifecycle related questions, or any questions relating to our products or services.
Organisations and individuals, need to adapt and change to the new ways of working to ensure that we survive this pandemic, and protect our sustainability for the future.
In 2011, Microsoft founder, Bill Gates, reflected on the many strides researchers have made in terms of treating diseases such as HIV, malaria and polio. Gates warned us, “There is one area, though, where the world isn’t making much progress, and that’s pandemic preparedness. This should concern us all because if history has taught us anything, it’s that there will be another deadly global pandemic”.
We introduce our CollectSuite, aimed at providing organizations with a comprehensive collections execution suite.
It’s that time of the year again: our annual roundup of top blogs! As always, we’ll be posting a series of lists of our most popular, and not-to be missed blogs grouped into our favourite topics. We’re starting with the top blogs which focus on collections and call centre topics. So without further ado, here are our top five debt collection and call centre blogs of 2019:
The current credit environment can be characterised as one of intense competition for customers, with organisations often taking additional risk to grow credit portfolios. Consumers are becoming increasingly aware of their “value” and changing their expectations of how an organisation should treat them.
Collection departments utilise diallers and collections management systems to improve their collections by segmenting the delinquent customers, prioritising them and applying a host of treatments. Whilst segmentation takes you so far, there are a host of other mathematical models that can be explored to improve what we call the “Collections Cascade”. Improvement in any step of the cascade can help improve the collections yield and there are a number of models that can be used. A few of them are listed below:
What is CollectSmart? CollectSmart is a powerful, modular, enterprise-wide debt collection management system that combines business controlled segmentation with the allocation of appropriate and differentiated actions to individual customer profiles - all accessed via an easy-to-use web interface.
We talk to credit expert, Mignon Roodt, about the Debt Relief Bill, what it is and what the potential impact of the bill is.
Staff motivation levels are an important factor in every business, but even more so in a client or prospect facing environment such as a call centre. If your call centre agents are motivated, you can expect them to remain an employee for a longer period of time, reducing staff turnover. This not only saves you a lot of resources for recruiting, but also for training.
Most websites or apps lately have a chat function, whether that be an AI-powered chatbot or a live chat function. But many people (and some businesses) don’t know the difference between the two and aren’t sure when they are talking to (or have installed) a bot or an agent.
What is Atura? Atura is a powerful artificial intelligence chat solution that uses cloud technology to deliver the right answers to your customers via any device, albeit mobile, desktop or tablet. Built on the Microsoft Azure technology stack, Atura uses its advanced algorithms and machine learning techniques to correctly understand your customer request and then deliver the correct response. In the event that the AI doesn’t understand the customer request, the entire messaging conversation can be seamlessly redirected to a physical agent to further respond to your customer. The result: a fluent and seamless customer experience!
Deciding on which cloud service to host your core business systems on can be a daunting task. Amazon Web Services (AWS) and Microsoft Azure are two of the biggest players around, while Google Cloud and IBM Cloud are also gaining market-share.
Innovative companies know they must embrace digital transformation in their business to stay competitive in the world of the fourth industrial revolution. But legacy systems often get in the way of transformation. In this blog, we look at why companies are reluctant to move away from their legacy systems and how to know when it really is time to modernise.
What is Agent X? Agent X is a call centre virtual assistant that not only guides and supports agents during calls, but motivates and inspires high performance via an engaging, dynamic and intuitive interface.
In a collections environment, an agent needs to follow up with numerous customers on their outstanding credit and the more distinct information the agent has on each customer, the better the agent will understand who they are interacting with and what the opportunities, risks and expectation of the collections call with the client are.
https://www.principa.co.za/contact-centre-solutions/artificial-intelligence-call-centre-virtual-assistant/We end off every year with a roundup of our most popular blogs – the blogs that you should not miss out on! This year is no different, and we'll be putting together four roundups this year, one for each of our main topics.
We are approaching a time of the year when planning for 2020 takes centre stage. As such it is important to look back and asses the channels that have been used across contact centres and determine their effectiveness. At the same time, it is important to look ahead at the trends and customer behaviour which can help lead to better customer interactions and satisfaction.
South Africa is currently the only country that has implemented an Early Debit Order (EDO) collection system. Our EDO system consists of both the AEDO (Authenticated Early Debit Order) and NAEDO (Non Authenticated Early Debit Order) payment streams and has been in use since 2006 to create a fair playing field for both businesses and consumers.
How To Improve Your Call Centre Agent Performance from PrincipaDecisions
Learning rarely stops after your formal education ends, whether you’re pursuing further learning out of personal interest, career-aspiration or it’s mandated by your company. Most companies offer funding and support for their employees to go on courses to keep their skills up to date or learn new skills. Companies spend millions every year on enabling employees to participate in physical, often off-site training, and the costs can cover training fees, training material, travel and accommodation.
How To Identify And Pro-Actively Correct Operational Problems In Your Call Centre from PrincipaDecisions
Meet Vusi, a call centre agent, with call centre agent struggles. He needs to keep his customers engaged while he shifts between various systems to find the information he needs to meet his manager’s expectations of consistent, successful call outcomes.
For collection operations and risk alignment, a critical success factor is the ability to predict month-end results accurately and at an early stage of the billing cycle.
As Debt Collection and Recovery experts, we are given the opportunity to attend and present at industry conferences and events. We find the conferences incredibly valuable in helping us stay up to date, as well as challenging us to remain innovative.
As a debt collection professional, there’s no doubt that you occasionally feel like you are out in the trenches. The nature of the industry is ever changing, as are the laws and regulations. And you need to stay on top of new technology and trends.
An average customer’s attention span is less than that of a goldfish, according to the National Center for Biotechnology Information. While a goldfish can focus its attention for 9 seconds, in 2015 customers were found to lose interest after only 8, down from 12 seconds in 2000. (Click to Tweet!) The reduced attention span, makes the initial impression all the more critical, especially in a call centre environment.
Machine learning, for all its cool applications, is at its core the generation of predictive models using advanced algorithms that learn from data. If we have enough reliable and stable data to feed it, we can build models and make predictions on just about anything. If you are new to machine learning, read more on What is Machine Learning?
Any tool that can optimise your collections strategy and improve efficiencies in your operation, is sure to make an impact on your collected yields. In our years helping collections operations to optimise and improve their collection strategies, we’ve found that data-driven debt collection tools offer the optimal solution to optimise and improve your recovery yields and increase your business revenue.
We have written a lot on ways to optimise your collection, but the simplest and most effective way is still to segment your debtors based on propensity to pay. Debtor segmentation is a best practice that every serious collections operation needs to utilise.
Machine learning and advanced data analytic techniques are often used in combination with behavioural sciences to develop coaching bots. Virtual assistant for call centre agents is a collections solution that guide and support agents through calls in real-time, offers them easy access to information and motivates and inspires high performance. This can translate directly to increased collection yields.
The management of debtors and account payments is often a laborious and reactive process that includes following up with debtors who are in default and don’t want to talk to you. Implementing a debt collections approach that is pro-active, could improve efficiencies and result in reduced amount of accounts rolling into delinquency.
South African credit providers are heavily reliant on debit orders as a payment channel. According to the Payments Association of SA (PASA), around 48 million debit orders get processed monthly across all industries within the borders of this country. Of the two broad types of debit orders that we have, 33.5 million are standard debit orders, and 14.5 million are early debit orders. The early debit orders are further broken down into two types – being Non-Authenticated Early Debit Orders (NAEDO) and Authenticated Early Debit Orders (AEDO), with only around 1 million of the 14.5 million early debits being AEDO’s.
As we mentioned in our previous posts where we compiled lists of our top 2017 blogs, we are switching it up this year. Instead of compiling our usual list of Top 10 blog posts on data analytics, we are instead giving you a shorter, but more focused top blogs selection– and not just one, but five of them! Our data suggested that our most popular blogs were very clearly grouped in broad categories, and we’ve decided to give you the best Principa blogs of 2017, by topic.
When looking at the collections cascade and it’s diminishing returns, we always emphasis the responsibility factor relating to each metrics. Whom is responsible for these areas, and how do we monitor the accuracy of these metric results?
I recently attended the First Party Summit – a Collections summit in the USA - which was an exciting conference focusing on the unique challenges of Collections, Outsourcing, and Customer Care. Over the 3-day period I learned quite a lot from the presentations and round table discussions covering topics from innovative communication strategies to the role of human and artificial intelligence in collections. Throughout the conference, I noticed the following two points were consistent through all aspects of the discussions: Personalisation and the Customer Experience are on the rise in debt collection. In this blog post, I’ll explain why.
Negotiation is a common activity in our daily lives. It’s human nature to try to influence others to achieve a better or advantageous outcome for ourselves. It’s ultimately an exchange of value. And if done well, it can leave both sides feeling like they’ve won. In my practice area of Collections & Recovery Solutions, negotiation is a critical tactic used in every engagement with a debtor. In fact, it’s so critical and core to the success of a Collections organisation that it merits a discussion with the ultimate negotiator to see if there are tips and techniques that can be learned and applied in Collections.
In our previous blog post we looked at data analytics in collections and the expected change in performance. Strategically, data analytics drives operational execution, but the question remains: where do we start? In this blog post, I outline the 3 steps to building your own data-driven collections strategy.
Credit lenders use data analytics to assess potential clients and determine affordability. However, many credit lenders and debt collection companies fail to apply the same practice when dealing with defaulting clients. In my first blog post, I'll cover the important role that data analytics can play in collections operations and solutions.
According to the World Bank, South Africans are the biggest borrowers in the world, with 86% of the population in debt.* And unfortunately, the National Credit Regulator, goes on to state that of the 20 million credit-active consumers in South Africa, 47% are in arrears on their accounts by three months or more, or had judgements against them, or had negative credit ratings on their credit record. ** As a credit risk professional, it is imperative to be able to segment your debtors by their propensity to roll and then apply the appropriate treatment by segment to minimise this risk and increase lift in your debt collection strategies.
Traditionally, the first quarter of any calendar year sees a dilution of both collection and recovery yields given the overspend that occurs over the December holiday season. Therefore, optimal strategies and operational execution are key to mitigating the effects of the first quarter ‘hangover’.