Enabling Financial Integrity: A Blueprint for Responsible Debt Recovery

Responsible debt collection practices have become vital for financial institutions looking to build trust, enhance customer relationships, and contribute to a fair financial landscape. Our report, "Enabling Financial Integrity: A Blueprint for Responsible Debt Recovery", guides you to navigate critical legislation and strategic collection approaches to align with the highest collection standards. 

THE MODERN DEBT COLLECTIONS SCENE 

Global uncertainties such as the COVID-19 pandemic, the energy crisis and inflation contribute to financial pressure and the cost-of-living crisis.

According to a survey by the Money & Health Policy Insititute, 54% of adults in the United Kingdom experience emotional distress due to financial worries. At the same time, the collection landscape is undergoing a significant shift driven by the prevalence of digital channels.

Customers expect financial institutions to follow a customer-centric approach and adopt responsible collection practices, including personalised communication, flexible payment plans and more. Meanwhile, legislative measures across Europe, such as the Treating Customers Fairly framework in the UK and legal frameworks tackling over-indebtedness across Europe, emphasise the importance of fair debt collection.

THE KEY TO FAIR COLLECTIONS 

As consumers increasingly prioritise businesses aligning with their values according to a recent survey, a responsible collections strategy must adhere to regulations and resonate with their conscientiousness. Embracing a human-centric approach fosters a partnership between the brand and the customer, nurturing deeper connections and trust. Discover how to: 

• Apply sensitive communication strategies
• Offer flexible payment plans
• Shift to digital-first collections
• Leverage predictive analytics
• Make training investments

In addition, identifying consumer characteristics associated with vulnerability is vital for ensuring equitable treatment, particularly among those with low income, individuals facing mental health challenges and those aged 75 and above. Explore how innovative technologies like machine learning and AI enable collection companies to prioritise customers at-risk and facilitate personalised communication. 

Consumer characteristics associated with vulnerability

HOW WE CAN HELP 

See how QUALCO integrates innovative technology to foster a sustainable and responsible financial realm. QUALCO 360, our comprehensive solutions ecosystem, goes beyond machine learning and AI. It enables: 

• Predictive Analytics, facilitating tailored collection strategies. 
• End-to-end Operations, simplifying workflows and reducing costs. 
• Digital Self-Service Capabilities, minimising customer service teams’ effort. 
• Omnichannel Customer Engagement, improving payment rates. 
• Central Reporting Capabilities, empowering informed decisions. 

Take the first step towards responsible collections today! Contact Us