The adoption of digital solutions and the use of technological tools, specifically Artificial Intelligence (AI), in debt collection management is revolutionizing operational efficiency, profitability, and customer experience in the financial sector. The modernization of debt collection processes has left behind traditional and complex strategies that were ineffective, completely transforming the way financial institutions face this challenge. In an increasingly competitive environment, making well-founded strategic decisions is crucial to minimize risks and improve debt collection efficiency.
The implementation of advanced technologies and digital solutions in debt collection management, such as AI, has allowed financial institutions to deepen their understanding of their customers and apply more effective strategies when granting loans. These technologies not only allow for anticipating behaviors, but also facilitate adapting services to the specific needs of each customer, thereby improving debt recovery. Data analytics provides a comprehensive view of individual finances, allowing for the identification of patterns and trends that are key to making intelligent and efficient decisions on a daily basis.
A prominent company in this field is GDS Modellica, part of GDS LINK, which offers the Digital Collections solution. This tool uses advanced algorithms driven by AI to analyze the payment behavior and financial situation of each customer. According to Antonio García Rouco, CEO of GDS Modellica, this tool offers several important benefits to financial institutions, including:
- Improve customer engagement: Smart segmentation allows for adapting communication to the debtor, ensuring more effective recovery.
- Maximize recovery rates: Anticipating debtor behavior allows for proactive intervention, increasing the success rate in debt recovery and strengthening the financial portfolio.
- Personalized customer interaction: Data-driven personalized communication reduces friction in the debt resolution process, promoting more effective messages and improving the relationship between lender and debtor.
- Automation to maximize efficiency: Automating tasks and payment tracking ensures timely and optimized interactions, increasing overall efficiency.
The Digital Collections solution adds significant value to financial entities’ processes by providing a comprehensive environment for quick and effective decision-making. The translated benefits include an enhanced customer experience and a higher rate of debt recovery in a timely manner. Data from GDS Modellica indicates that, with the implementation of this solution, delinquency can be reduced by 15-20%, sales can increase by 5-10%, and expenses can be reduced by 20-40%.
The ability to automate and streamline debt collection, with specific strategies tailored to each customer’s needs, allows financial entities to adapt their approaches, prioritize management, and segment data according to the type of debtor. This personalized approach helps customers feel understood and supported, strengthening relationships and trust between the company and its customers. Bi-directional interactions become crucial strategic points to optimize debt collection, automate decision-making, and increase customer loyalty and retention.
GDS Modellica, as part of GDS LINK, provides analytical technology and decision management, as well as specialized consulting in credit risk processes. With over 17 years of experience, they have successfully collaborated with hundreds of financial institutions, retailers, insurers, and other sectors in more than 36 countries, enhancing the decision-making process throughout the customer lifecycle and building profitable relationships based on their knowledge, technology, and industry best practices.
Source: MiMub in Spanish
