Leverage loan collection performance with Debt Collections Bot

Automate all aspects of the default management process, reducing costs and delivering better debtor engagement

Challenge

Existing debt recovery methods are expensive and not scalable. Even modern digital strategies reliant on text channels are static in their approach and provide limited efficiency

Solution

The Debt Collections Bot is able to initiate millions of interactions across multiple channels, have a personalised conversation with a debtor, empathise with their situations and gather unique data

Results

AI automation in debt collections allows to save up to 50% on agents. Investment in this type of automation can lead to higher conversion rates and thus better long-term revenue

Excellent customer service is personalised service

AI technology is capable of mimicking human conversations, collecting real-time data, driving engagement and circumstantial personalisation

The Debt Collections Bot uses voice, SMS, WhatsApp, Telegram and email channels, enabling debtors to communicate over the channels they feel most comfortable with.

The bot is able to empathise with individual circumstances and use that context through an individual debt recovery lifecycle leading better recovery performance

100сalls/min

while agents can handle only 100 calls/day

35%

reduction in call centre service costs

56%

of debts are paid off after a conversation with the bot

75%

of debtors remain on the line until the call is complete

Compliant & Validated for Security with IBM

Tovie AI’s conversational AI solutions for Financial Services are validated and available on the IBM Cloud for Financial Services®.

We are the first vendor in the Conversational AI space to be validated by IBM Cloud for Financial Services. All our conversational solutions are now automatically compliant for FS organisations.

Learn more

Provide utmost flexibility in debts recovery

Improve loan repayment rates

Clients with arrears are usually reluctant to talk openly about their debts, ignoring messages and calls from debt collectors. Knowing that it is a robot they are speaking to, customers will feel less pressured

Relieve workload for agents

A single bot can operate 24/7, taking the load off your human agents. Tailored specifically for diverse debt collection practices, it has script samples and debtor status lists to streamline the process.

Automate customer coverage

Automate your existing default management process by creating custom call flows. Make decisions based on the data collected by the bot, getting real-time results

Manage debt recovery with better efficiency

The virtual assistant initiates automated debt collection calls to late-paying customers

Automation scenarios across the entire debt recovery lifecycle

Preventative Stage

Gentle reminders
Drive an action (Repayment, reminder)

Early Delinquency Stage

Drive a conversation
Determine default root cause
Drive an action (Repayment, reminder, human escalation)

Advanced Delinquency Stage

Drive a conversation
Empathise with root cause
Warn of non payment consequences
Drive an action (Repayment plan, human escalation)

Legal Stage

Deliver final notices
Drive final actions

A unified view of the customer

Existing data combined with communication history analytics drives personalisation and determines the propensity to pay with automation scenarios across the entire debt recovery lifecycle

Communication history analytics

Delinquency
reason

General
demeanour

Willingness
to engage

General
sentiment

Likelihood
to repay

Use
of profanity

Responsiveness/
Seriousness

Your CRM/ Database

Income

Existing liabilities

Credit score

Previous history

Nature of debt

Length of debt

Size of debt

Redefine the debtors' journey with AI

Compliance with the law

Ensuring compliance with asset receivables collection laws in a heavily regulated industry is an ongoing process. Debt Collections Bot scripts comply with all established laws and regulations of the FCA and CSA

Omnichannel collections

The bot can interact in a text or voice channel convenient for the debtor. It engages in a dialogue with the customer, confirming payment dates, and providing answers to frequently asked questions

Human-like dialogue

The way the smart bot communicates as it uses phrases, details, and reactions to interjections creates an authentic and realistic human-like communication experience.

Data gathering

During the conversation, the bot collects data like the status of the dialogue and the client's responses, allowing it to aggregate and visualise the necessary data. Can be integrated with your CRM

The bot seamlessly connects with any CRM, database or payment terminal

Debt Collections Bot generates significant value and boosts performance

87%

Reduction in human error

43%

Increase in efficiency

80%

Increase in debt recovery

Want to learn more? Get our free report on the UK debt collection industry

AI debt collection software allows companies to automate debt collection strategies, while also staying within the ethical framework and providing a human-like approach.

UK households are facing a cost-of-living crisis. In July 2022, the annual rate of inflation reached 10.1% and it is expected to peak at 13% in early 2023. This is why companies using any AI solution for debt collection, such as a loan bot or smart IVR, have to focus on customer empathy first and foremost today.

AI and debt collection combine to help companies be as courteous as possible to people in a predicament, while still focusing on recovery.

Reports&Research

UK Debt Collection Industry:

Stats, Practices and AI-powered automation

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FAQs

How is AI used in debt collection?

Finance businesses and debt collection agencies use conversational AI to automate and improve the communication process with debtors. This includes automated calls where voice AI bots remind them about outstanding debts, address common queries, and guide debtors through dispute resolution and payment options. Powered by advanced natural language processing and machine learning, the AI collection agents can engage in intelligent conversations with debtors, ensuring a higher likelihood of successful debt recovery.

What is automated debt collection?

Automated debt collection refers to using technology to make the process of collecting past-due debts more efficient. This can involve tools like chatbots, interactive voice response systems (IVR), and text message services based on artificial intelligence. Automation with such tools can be implemented across the entire debt recovery lifecycle, helping debt collectors and agents work more productively by automating tasks such as contacting customers, collecting payment information, and managing their time and decisions.

How automation can improve debt collection?

Automation can improve the debt collection process in several ways. For example, it can facilitate prompt communications and omnichannel engagement with debtors that, in turn, increase the chance of responses. Automation also reduces manual and repetitive tasks for debt collection agents. This means agencies can handle more cases without using as many resources. Overall, automation with Conversational AI can lead to growth in debt recovery and better long-term revenue.

How AI is modernizing the collection process?

Modern customers expect immediate responses and highly personalised communication experiences from services. Conversational AI modernises the collection process by enabling real-time assistance to debtors’ inquiries and providing personalised communication. Additionally, automation helps mitigate risks related to compliance regulations. For example, the bot can be programmed to initiate interactions according to the schedule in line with local debt collection communication regulations.

How to build a debt collection bot?

In the initial stage, building a debt collection bot involves taking into account two main factors. First, defining clear objectives for the bot. What goals a debt collection bot should achieve? This can include tasks such as sending reminders, answering common debtor inquiries, and collecting payment information. Second, considering the regulations it must comply with. What are the communication regulations on federal and local levels are in place?

When that is defined, you need to hire a solution provider who can help you design conversational flows that guide interactions with debtors and integrate the bot with debt management systems. When selecting a provider, evaluate their technology stack, specifically their NLP capabilities and integration options. Unlike other providers, Tovie AI has its own ecosystem of AI tech tools for building bots, including its own advanced NLP core that allows for creating highly accurate bots and 30+ readily available integrations.

How can debt collection bots assist in achieving compliance with communication regulations?

Debt collection bots, driven by artificial intelligence, offer a transformative solution for debt collection agencies by automating processes and ensuring compliance with communication regulations. Manual procedures often fall short in the constantly changing landscape of UK regulatory standards, making automated compliance through bots crucial. These bots effectively manage call frequency, adhering to local regulations to prevent accidental breaches.

They deliver standardised, compliant messaging, eliminating the risk of human error and subjective interpretation. Designed for empathy-driven communication, bots convey compassion to debtors while maintaining debt recovery objectives, preventing ethical boundary violations.

Bots, adaptable and easily updated, keep debt agencies current with the latest regulatory changes, minimising the risk of compliance violations. They accurately document communications with debtors, providing crucial evidence in case of disputes or regulatory inquiries. Additionally, these bots generate comprehensive compliance reports detailing communication metrics for monitoring adherence to local regulations.

By streamlining compliance processes, minimising manual work, and reducing human error, bot automation ensures better customer relationships, increased efficiency, and reduced compliance-related issues for debt collection agencies. Adopting debt collection bots is rapidly becoming necessary for agencies striving to conduct operations fully compliant, showcasing their significant potential in transforming the debt collection process.

To learn more, please check out our blog article.

What are the benefits of debt collection automation?

Traditional debt collection measures, such as aggressive calls, door-to-door collections, and invoice reminders, have all failed. Debt collection software allows banks to automate their collection activities.

Here’s a list of benefits that automation for debt collection brings in:

1. Optimisation

The debt collection software eliminates the need to work on minor lead management tasks, preventing human agents from performing mundane tasks. This ensures operational automation and saves resource time.

2. Customer segmentation

Debt collection software empowers agents with a single view of a customer. It ensures automated segmentation of the customer base based on factors like delinquency, credit history, demographics, account age, etc. This categorisation helps collection agents approach different customers with the right tone of communication to deliver a personalised experience.

3. Progressive collection

Collection agents are loaded with debt collection tools that automate their dialling strategies and intelligently identify the best time to connect. Thus, the agents can target the customer using the correct method, which will help in incremental and speedy collection.

The debt collection automation process plays an important role and is already becoming an integral part of the default management process. Voice bots are not only more convenient but are also more cost-effective than a team of agents.

Debt collection bots also simplify customer interactions, making conversations more efficient and personalised. Using customer data from the CRM, bots provide answers to questions in real-time with no chatbot-to-human handoff.