The cultural considerations of collections

“Money is a lot more than just a means of exchange or a store of value. It carries cultural weight, and as you move across cultures, attitudes shift quickly”

“Age is just a number

In China, personal finances are more openly discussed than in the West, and as one Chinese lecturer notes, the Western practice of removing the price tag from gifts is seen as strange. In Pakistan, meanwhile, the country’s dominant faith informs their attitude to money. A form of tithing known as Zakat is legally mandated, meaning that Pakistanis must donate 2.5% of their earnings to the less fortunate.

Just as money comes with its cultural nuances, the same is true of debt and debt collections. After all, where there’s credit, there’s debt. Its roots are ancient: The Code of Hammurabi, the best-preserved ancient law code created in 1760 BC, for example, defined rules on debt and the accumulation
of interest.

“Ultimately, no matter what the generation, customers respond to
excellent service
By using data, banks can highlight similar individuals in similar arrears, and by using creativity (the right tone of voice, the right style of communication, and the right calls to action) banks can encourage more people to pay more debt. Debt collections isn’t a tactic, it’s a strategy. And the best strategies work by having a deep understanding of the people you’re trying to connect with.

Getting that right is one giant leap towards improving the performance of debt portfolios.  Fill the form to download the guide.