QUALCO |
Terry Franklin joins Webio's Credit Shift Podcast
How does Artificial Intelligence technology impact the Credit and Collections industry? During an episode of the Credit Shift Podcast series, Terry Franklin, our EVP, Products & Markets, joins a discussion with Paul Sweeney (Webio) and Dan Blagojevic (Optima) on this trending topic.
In the podcast, Franklin talks about the opportunities, challenges, and implications of AI in the Credit and Collections industry. He discusses how AI can profile population groups and integrate machine learning across businesses. He also highlights the risks and rewards involved in these AI-infused processes and provides invaluable tips on how organisations can ensure ethical AI usage. Furthermore, he emphasises the need for quality data in AI models to bypass bias and shares his views on the industry's evolving landscape.
Ready to dive deeper into the key takeaways of the discussion?
Deploying AI in Real-Time
Analytics and deep learning neural networks have been around for some time. What has changed is, according to Franklin, that we can now develop machine learning and AI and deploy it in real-time or near real-time.
“AT QUALCO, WE LOOK AT ANALYTICS AS AN ENABLER TO MAKING BUSINESSES RUN MORE EFFECTIVELY, AN ENABLER TO BETTER UNDERSTANDING THE CUSTOMERS AND THE CUSTOMERS THAT OUR CLIENTS SERVE.”
By predicting customer behaviours, QUALCO tailors the interactions to better align with the circumstances of each business or individual. This ensures that their specific needs are addressed and helps them in the best possible way. As Franklin explains, at QUALCO, we identify the areas that align with the types of businesses we cater to and explore adjacent markets with even greater potential value through analytics. This includes improving operational efficiency, optimising business processes and empowering clients to assist their customers effectively.
Developing Emotional AI Solutions
QUALCO specialises in the Collections and Recoveries industry and leverages technology to deliver better client benefits and outcomes. For Franklin, it is essential to understand how data analytics, machine learning, and AI can enhance how clients interact with their customers and ensure these technologies are deployed effectively.
“USING AI IN A WAY THAT ISN'T SPOOKY OR SCARY FOR THE END CUSTOMER IS CRUCIAL.”
According to the EVP, Products & Markets, understanding how a customer might react to a specific situation is essential. Additionally, conveying an awareness of their needs and the ability to empathise with them while offering clear guidance swiftly can create a positive impression. This approach fosters the perception of a caring entity genuinely concerned about the customer and committed to achieving a suitable resolution.
“PEOPLE CAN UNDERSTAND IF SOMEBODY IS IN FINANCIAL HARDSHIP OR NOT. BUT SOMEBODY'S ATTITUDE TO PAYING IS VERY DIFFERENT […] AND UNDERSTANDING THAT WILL ADD VALUE.”
Applying AI Ethically
Franklin describes how AI can enhance customer conversations by identifying significant patterns in the customer's language and messaging. This includes recognising extended word sequences, language preferences, and references within the text. The interacting agent can promptly highlight these cues, enabling a more efficient and personalised conversation and offering relevant support or services, such as helplines.
In the credit risk industry, revealing financial hardship or vulnerability can be excessive due to extensive questioning. According to Franklin, AI can streamline customer interactions, particularly regarding sensitive financial hardships or health issues. Instead of making customers go through lengthy and potentially uncomfortable questioning, agents can adopt a more empathetic approach when alerted to potential problems. This benefits customers and improves customer service, ultimately creating a positive experience.
Franklin also underscores the importance of addressing AI model bias. QUALCO's comprehensive approach goes beyond analytics, machine learning, and AI, ensuring the highest quality of the models and data used to develop them. Our data scientists prioritise data quality to prevent model biases, ensuring they accurately reflect specific challenges and decisions that need resolution or prediction. Maintaining the quality of the data source is a fundamental aspect of QUALCO's bias mitigation efforts.
Optimising Business Efficiency
In the quest for cost reduction, businesses increasingly turn to technology, data, and analytics to revamp customer interactions. This entails adopting the right processes, selecting the optimal digital pathways, and minimising reliance on physical resources. This approach is becoming more popular nowadays, driven by the escalating living and energy costs. As a result, most organisations are actively looking for ways to improve efficiency.
Businesses using multiple customer communication channels and expecting a surge in interactions due to rising living costs can use technology to optimise resource allocation and maintain efficiency. The goal is to employ data-driven, analytically sound practices to preserve or improve historical outcomes. Organisations strive to integrate these new models and training methods into their daily operations and structures to remain effective in the present and future.
Using AI to Impact Society for the Better
For Franklin, the power of AI in driving positive societal change is undeniable due to its potential to identify cost-driving factors that burden society. One compelling example is the ability to predict the onset of type 2 diabetes and proactively intervene to prevent it. Such applications are poised to make a substantial, far-reaching impact on society, offering better ways of living and tackling complex issues.
“THE DEEPER YOU CAN UNDERSTAND THE ATTITUDES OR THE BEHAVIOURS OF A CUSTOMER [...] THE MORE USEFUL THAT WILL BE IN HOW YOU TAILOR THE INTERACTIONS THEREAFTER.”
He emphasises that a deep understanding of customer attitudes can significantly enhance how interactions are customised. QUALCO is committed to leveraging AI to address real-world problems and make a tangible difference. The company's work spans extensive research, including image recognition across vast landscapes and predictive modelling for specific portfolio behaviours. The team's long-standing expertise is translating data into actionable insights through technology.
“FUNDAMENTALLY, WE AIM TO HARNESS THE POWER OF AI TO FACILITATE POSITIVE CHANGE.”
While the perception of AI's capabilities often surpasses practical application, we focus on helping our clients identify practical ways to benefit from AI technology. Our approach involves exploring innovative ways of analysing extensive datasets, identifying trends and behaviours, and sharing the insights gained. Ultimately, we aim to deliver better outcomes for our clients and their customers while adhering to regulations and aligning with consumer expectations.
Are you interested in learning more? Listen to the episode 👇
Europa Factor and Credit Factor partner with QUALCO to transform their credit and collections management operations
