The debt collections industry in Indonesia has traditionally relied on manual processes and outdated methodologies. However, the rapid advancements in technology are also making an impact on the Indonesian debt collections practices. Innovative technology platforms and digital solutions are carving a space in the dynamic environment, revolutionizing the debt collections market, and enabling more efficient and effective practices. Let us…
Retail lending companies now realize the importance of maximizing efficiency in debt collections. Lenders are working on tailored strategies to address the challenges, which include high cost, delays in repayment, and cumbersome communication methods associated with manual processes. Instead, they are implementing simpler, seamless and efficient debt collections strategies to attain higher productivity and collections rates. By adopting fresh approaches,…
The rapidly changing consumer behavior is characterized by a paradigm shift in how people search, buy, borrow, consume, engage, and communicate. Digital engagements have become a way of life, and customer experience expectations are continuously evolving. In an era where customer needs reign supreme, and personalization is rapidly becoming a norm, lenders must reassess their approach to debt collections. Adopting…
Field debt collections is a process that involves the recovery of outstanding debts through face-to-face communication between the debtors and the collection agents. This method is often used when traditional collection efforts, such as phone calls, letters, and emails, have proven insufficient to recover the debt. Professional collection agency’s in-house collections teams typically carry out field debt collections, which creditors…
With the growing demand for retail debt amidst the volatile economic scenario there is a potential for a rise in delinquencies. In this scenario, the inadequacy of traditional collections mechanisms can become a handicap and pose challenges for lenders and other financial institutions. Lenders need to revisit their approaches across the entire debt collections lifecycle in the current context while…
With geopolitical uncertainties rising due to multiple factors and several economies facing headwinds, economists are predicting that the world economy is likely to enter a phase of slowdown. The tightening of monetary policies by central banks worldwide will have a significant effect on the global financial landscape. This is also likely to have an impact on the credit cycle and financial institutions…
The lack of transparency in work distribution and ineffective incentive management contribute to the high attrition rates experienced by collections contact center teams and field teams. In addition to lowering team morale, this translates into subpar performance in collections. Therefore, it is crucial for lenders to prioritize transparency and effective tracking of agent performance, which will result in higher agent…
The financial services industry operates with an implicit degree of calculated risk that arises from multiple levels of uncertainties in their operational ecosystem. When it comes to debt collections processes, the regular inflow of new debt, dynamic business scenarios, and the evolving regulatory environment add to the complexity. Moreover, changes in the economic landscape and the transition toward customer-centricity have…
Debt collections comprise a number of processes to collect overdue loan repayments from borrowers. These mechanisms can be lengthy and complex, especially when the borrower becomes inaccessible through the primary contact details. Banks and other financial institutions at times face a huge challenge in re-establishing contact, particularly with defaulting borrowers for loan accounts. Due to this gap, the recovery time…
Indonesia is working to establish itself as one of the top 10 economies in the world by 2045. A McKinsey reportⁱ¹ has predicted that approximately 90 million Indonesian citizens will join the consumer class by 2030 – a number higher than all emerging nations except China and India. In addition, government data indicates that Indonesia’s GDP is expected to grow…
Businesses today are moving toward integrated, specialized, and intelligent strategies for effective customer engagement and retention. With the advent of Artificial Intelligence (AI), Natural Language Processing (NLP), and Robotic Process Automation (RPA), the banking and financial services industry is leveraging new possibilities in digital transformation. With 600 million smartphone users¹ in India, and social media facilitating faster information exchange, powerful…
Over the past decade, the financial services sector has evolved tremendously, thanks to developments such as access to smartphones, internet penetration, simpler digital payments, data sharing, financial inclusion initiatives, and the rise of FinTechs. One resulting trend is the advent of new lending models that didn’t exist earlier. For instance, a person seeking a loan to pay for an expensive…