Operating in such a competitive environment, fintechs and buy now, pay later providers are very much focussed on delivering innovative solutions, customer acquisition and growth, leaving little time to develop a collections strategy. Outsourcing this task can be an effective solution to this dilemma, as long as you know what to look for in a debt collections agency.
There's no doubt, all businesses want their debt collections agency to recover as much overdue money as possible. But agencies that offer a digital-first, customer-focused approach can also help support a business's growth plans. It's being digital that's key to this. Today's empowered customers expect the organizations they do business with to interact with them digitally, as this McKinsey report found. Fintech and BNPL customers have opted for a full digital experience, so a digital collections experience is also expected.
Respect for customers
With customer acquisition a major goal for fintechs and BNPLs, choosing a collections agency that treats customers with respect is paramount. Providing personalized and positive communications to customers is a key driver of the respect a digital agency, such as InDebted provides. Our approach is data-driven and omni-channel, which allows us to build behavioral models to gain a better understanding of each customer, such as how and when they like to be contacted. This approach improves the collections experience for customers, and results in more successful recoveries.
A digital agency can also more easily help businesses avoid the potential social media backlash that a disgruntled customer could have on their reputation. Through providing positive experiences that support customers on their journey back to financial fitness, reputations are more likely to stay intact while customers stay loyal, reducing churn.
A framework that provides confidence around compliance
With the focus on growing as quickly as possible, often into areas where compliance processes differ between jurisdictions, compliance can be complex and time-consuming for BNPLs and fintechs. While it can be difficult to keep up with changing regulations, ensuring customer communications are compliant is a critical part of business.
Our digital platform has inbuilt and automated compliance measures that cover all global markets to deal with all issues around process and people risks, thus eliminating any compliance concerns. And being digital end-to-end, our platform easily and flexibly scales in line with any growth requirements.
A partnership that supports growth
While the technology benefits a digital agency offers are important, so too are the relationship elements – after all, debt collection involves dealing with customers on very sensitive matters. We take a partnership-led approach that goes beyond simple onboarding to support businesses' goals, while the need for just one integration makes it easy to promote growth in every region.
Choosing an agency where the working arrangement is simple but effective, ensures businesses can stay focussed on what's core to them. To further assist, we share our insights, gained from having a high number of fintechs and BNPLs as clients, to help inform growth strategies, including benchmarking against peers.
Fintechs and BNPLs operate in a very competitive space and with their eye on growth, collections practices can be neglected. But partnering with a digital debt collections agency, such as InDebted, ensures these businesses not only benefit from a greater number of recoveries, but they can stay focused on their growth ambitions, confident their customers are being looked after.