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…
With shifts in technology, changes in regulatory requirements, and diverse borrower demographics, the field debt collections needs innovation and technology intervention. Field debt collections are beset by multiple challenges that include disconnected teams, inefficient borrower communications, paper-based processes, ambiguous performance metrics and management of third-party agencies. Inconsistency in capturing location of field agents adds another layer of complexity. When the…
The digital disruption in the financial sector over the past decade has not only simplified financial management but also improved financial inclusion. A McKinsey report¹ highlighted that despite rapid urbanization, the rural population is likely to form 63% of the total market share in India by 2025. The rapid adoption of digital technologies by various banks and other non-banking financial…
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…
Debt collections is an important pillar in lending as it directly impacts the lender’s overall revenue and profitability. Growing purchasing power is accelerating the consumption of debt-based products in India, thereby, creating a promising growth opportunity for lenders. But at the same time, the need to recover debts is also increasing due to multiple factors. This brings forth the need…
Overview Each and every individual working in any sector wants to earn money and the companies that lend money (loan) to such individuals for various purposes are no different. Banks and NBFCs (lenders) grant loans to individuals and businesses, known as the borrowers, for a fixed period of time. These borrowers are required to repay the loan within the repayment…