Understanding customer needs across every channel
Managing collections is challenging in stable economic times. The COVID-19 pandemic has introduced new and complex issues.
Challenges include:
- Dialing for dollars
- Poor customer experience
- Significant resources requirements
- Insufficient investment in default operations
- Complexity and velocity of regulatory mandates
- Unsustainable cost base and substantial credit loss exposure
- Lack of scale and efficiency
To successfully build an inbound collections campaign, banks will need to show a higher level of understanding of their customers’ needs, across every channel. This means approaching customers in a compassionate way and seeking to understand their personal circumstances. In turn, this will provide banks with greater insight into real-time customer behavior which will enable them to create better, more relevant solutions.
Keen understanding of their customers’ specific situations and behaviors will give banks the confidence to pre-approve treatment strategies where appropriate, thereby building a successful inbound collections process, benefitting both customers and lenders. To help lenders more effectively manage the collections process, EY and Pegasystems recently introduced the Compassionate Collections solution.
The EY Compassionate Collections solution was developed to help clients formulate and implement end-to-end integrated default solutions oriented around an appropriate customer focus. Compassionate Collections transforms operations from a legacy outbound dialing perspective to an inbound digital solution with a focus on helping solve the customer problem.