Over the past 12 months, debt collections has continued to evolve at a rapid rate. Customers are demanding more flexibility and streamlined service which better reflects the high demands of modern-day living.
On the flip side, customers are struggling to manage their money and make their money stretch, with a recent report from TUC revealing that household debt is continuing to hit new record highs. The figures recorded for the first quarter of 2019 show that unsecured debt is up to £15,880 per household, which is an increase of £1,160 from TUC’s last report released back in 2018.
With this in mind, retail banking is having to quickly consider these struggles and create debt collections strategies that benefit both the business and the customer. Aggressive calls, email notifications and stern letters are no longer proving successful.
This is where a smart debt collections process comes in. Taking a different approach can help the retail banking sector identify a hard but fair approach that’s empathetic to a customer’s individual situation, yet effective from a business/financial standpoint.
In this piece, we take a look at the biggest debt collections trends set to make a difference in 2020.