When you ask bank personnel what is the major challenge they face, almost everyone will start talking about the increasing amount of Bad Debts and Non-Performing Assets – people who have stopped paying their due in time or totally disappeared without paying the credit amount. The reason can be as simple as the person forgetting to pay before the due date, to willing but not enough cash available to wilful default.
These receivables impart huge stress on the liquidity of companies, and as the age of the receivables increases, the probability of debt recovery drops drastically. This has pushed many banks’ & financial institutions’ P&L statement negative or at least reduced the profit levels by a huge extent.
Challenges faced by the Banks and Financial Institutions During Receivables Recovery
Banks and financial institutions try to reach out to customers to remind them of the due date through various modes like email, text message (SMS) and voice call but are often faced with many operational hurdles.
Due to the large number of clientele, it takes huge amount of effort and time to manually dial each and every number of the thousands of customer data presented. Due to lack of data sanity in most of the case, majority of the agent’s efforts are wasted as the call connects to a different person or answering machines or routed to voice mails. Lot of time is also wasted due to the busy tones and others. This increases not only the overall average handle time but also the cost to serve. Also, serving all the customers including the high networth individuals with a similar strategy might result in huge dissatisfaction or worse – move their business to their competitor
Imagine if there was a solution which can streamline the collections processes and improve the operational efficiency along by greater coverage and connect rates with ease. Imagine if there was a solution which can deliver higher Promise-to-Pay (PTP) rates effectively. Collections-as-a-Service play a major role in the debt recovery process. With the help of intelligent outbound systems, the recovery process can be optimized up to 3-4 times. That would dramatically decrease your bad debts and make your P&L statement look comparatively better.
Ameyo Collect does exactly that!!
What is Ameyo Collect?
Ameyo Collect is a one-stop state of the art solution to the accounts receivable problems, by leading Omnichannel Customer Experience Solution provider, Ameyo. The solution prides itself on being the largest captive and fully (100%) automated deployment for collections currently available in the market. With leading bankers in India and around world as customers, Ameyo Collect has helped them better the PTP ratio and optimize the collections operations.
How Ameyo Collect helps Banks / Financial Institutions
Ameyo Collect is fully automated in real-time synchronizing the leads between LMS and Ameyo collect, ensuring that the customer delinquency data is updated in real-time so that the agents need not waste time and effort on leads which have already paid the dues. This not only saves time and cost but also ensures bad customer experience is not provided by interrupting the customers for dues which they have already paid.
At the core of Ameyo Collect is the intelligent and automated bucketization system which segregates the customers based on multiple factors like their delinquency level, credit history, net worth, age of the account etc. Segmenting the customers will ensure that separate strategies are taken for different buckets of customers. For example, If a person who has been a loyal customer with the bank for years, does almost all of his business transactions via the bank and has good credit history is treated in the same way as a person who often misses the due dates and has very bad credit history, the loyal customer feels dissatisfied and moves all his business to your competitor who provides better customer experience.
Debt collection software provides multiple dialing modes for each bucket, both automated and manual like preview which provides a preview of the customer profile before connecting the call, progressive which eliminates the wait times due to busy signals, answering machines, and disconnected numbers, and predictive which predicts the probability of connecting to a customer and ensures high connect and coverage rates. The parallel-predictive dialer which is unique to Ameyo enables target-based and skill-based dialing for targeted outbound campaigns. This new dialing mode is a customer-oriented solution that granulates the outbound dialing strategy to achieve a more targeted campaign.
Along with the above-mentioned features, Ameyo Collect is also packed with features like smart reminders which remind & follow up with your customers at the right time with ease via automatic reminders, Message and Voice blasts of prerecorded messages to reach out to customers of lower buckets to ensure low cost of reaching out to customers, intelligent outreach which empowers debt collection specialist to talk to the right customers at the right time.
Banks and other financial institutions need to embrace collections-as-a-service in order to stay competitive in the current digital world and improve on their receivable collections process. Banks should not just aim at collecting the dues but also ensure great customer experience is process in the process. Collection of receivables ensuring high coverage and PTP rates, without losing loyal customers should be the key goal for the banks and financial institutions
To learn more about how Ameyo Collect can help your bank or financial institution improve the receivables collections, try our free demo!