About twelve years ago, there were about 10,000 debt collection firms in the US but that number has fallen to less than 7,000 in recent years. Does this mean that there are no more debts and no debt collection? No. The number of debt collection firms have dwindled because debt collection has been largely automated using AI voicebots. The use of voicebots in debt collection has made things easier for both debtors and debt collectors.
According to a Gartner analysis, AI voicebots are expected to account for 40% of all customer care conversations. Another research by Bellomy suggests that 59% of people across all generations want to move to a 100% automated loans process. This definitely plays a key role in the huge rise in demand to automate the debt collections industry. According to a recent Aite survey of North American lenders, 53% of lenders have upgraded or will upgrade their ability to communicate with borrowers through a variety of channels. In February-April 2020 alone, inbound call traffic to AI-powered or automated call assistants rose by 40%. A 2019 survey by Usabilla also suggests that 54% of respondents prefer a voicebot over human agents as it saves their time.
Voicebots in Debt Collection Can Help Debt Collection Agencies in the Following Ways.
Scale and Capacity
Voicebots enable collections agencies to scale their operations and handle a large volume of debtor interactions. They can handle multiple calls simultaneously, ensuring that debtors receive immediate assistance without experiencing long wait times. This scalability allows agencies to effectively manage a growing portfolio of accounts and efficiently handle high call volumes.
Voicebots in Debt Collection Augment Work
Voicebots augment the work of human agents in debt collections. While voicebots handle routine tasks and inquiries, human agents can focus on more complex and sensitive interactions that require empathy, negotiation, and customized solutions. This augmentation enhances the efficiency and productivity of human agents by allowing them to allocate their time and expertise more effectively.
Voicebots in Debt Collection Save Costs
Voicebots offer cost savings to collections agencies by reducing the need for extensive human agent resources. Voicebots can handle a significant portion of routine interactions, freeing up human agents to focus on higher-value activities. This reduces staffing costs and allows agencies to allocate their resources more efficiently, improving the overall cost-effectiveness of debt collection operations.
Increased Efficiency
In December 2019 alone, 75,200 complaints were launched with the Consumer Financial Protection Bureau. Out of these, 45% complaints were about calls for debts not owed. Voicebots can reduce such errors and provide immediate and accurate responses to debtor inquiries, eliminating the need for manual research and reducing handling time per call. Debtors can access account information, receive payment reminders, and initiate resolution processes promptly. This efficiency not only improves debtor satisfaction but also allows agencies to handle a larger volume of interactions within a shorter timeframe.
Consistency and Standardization
Voicebots ensure consistent messaging and adherence to predefined scripts and guidelines. They deliver uniform and accurate information to debtors, minimizing variations in communication that can occur with human agents. Consistency in debt collection practices helps build trust and credibility with debtors and ensures a standardized approach across all interactions.
24/7 Availability
Voicebots provide round-the-clock availability for debtor interactions. Debtors can access information, make inquiries, or request assistance at any time, including outside regular business hours. This availability enhances customer service and debtor convenience, accommodating different schedules and time zones.
Improved Call Routing
Voicebots can route calls to the appropriate human agent or department based on debtor needs, call complexity, or other criteria. By analyzing debtor inquiries and data, voicebots can efficiently connect debtors with the most suitable agents, ensuring that calls are handled by the right individuals with the required expertise.
Conclusion
Overall, Voicebots in Debt Collection bring significant benefits in terms of scale, augmentation of work, cost savings, and efficiency for collections agencies. They enable agencies to handle larger volumes of debtor interactions, optimize resource allocation, reduce costs, deliver consistent messaging, and provide a more efficient and satisfying experience for debtors.
Would you like to witness the powers of voicebots in enhancing debt collection?