Inflation and rising delinquency rates pose a challenge for the collections market. With income setbacks from the pandemic now intensified by soaring inflation rates, businesses and consumers are turning to credit to handle and control growing debts. In addition, as consumer credit rises, lenders face reduced debt-servicing capabilities. Consumer behavior and spending are changing, resulting in an even higher debt. 

Unpaid debts can weaken a creditor’s financial health. Therefore, lenders must have a complete, customer-centric approach to collections by leveraging technology to assist debt collectors, consider current market conditions, and provide empathetic support to customers. While this may seem like a daunting task, it is helpful to know that the integration of digital tools and regulatory changes has made it possible for lenders to implement debt recovery strategies that are both effective and cost-efficient. 

Generative AI and Technology are Driving Smarter Decisions

Technology has become integral in optimizing the debt collection process. Today, we are seeing the progress of predictive analytics, which heavily – and positively – contribute to customer-centric experiences through personalization. Data-driven tools continue to allow creditors to segment debt portfolios efficiently, which helps them prioritize accounts based on their propensity to pay. 

AI-based analytics platforms are also playing an increasingly transformative role in the digital solutions landscape. Tools like TP Recommender provide propensity-to-pay and omnichannel segmentation-based models and strategies. It harnesses the power of predictive analytics to help predict customer behavior, as well as drive better business insights obtained from customer interactions. Put simply, it enables smarter decisions.  After all, smarter agents who have an augmented understanding of the consumer through our predictive analytics tools, lead to personalized solutions. 

Empathy Ensures Brand Loyalty

While technology plays an important role, creditors must never forget the human aspect of the collections process. When accounts enter collections, handling the situation becomes even more delicate as customers are often sensitive about their financial difficulties. With potential loyalty loss at stake, navigating with empathy is crucial – all while being compliant.

To overcome the many challenges of the collections space, lenders are tapping into the services of digital business services providers who can understand customers through data analytics, possess industry leadership and global presence, put a strong focus on customer retention, and provide tailored, AI-powered debt collection processes that adhere to regulatory compliance. Not only is this the right thing to do, it is also good business.

People-first, Compliant-always

AI expertise, a strong focus on the human touch, a passion for innovation, and a partner who can adapt to change to master the future in an ever-changing collections landscape. If that’s what you want, at Teleperformance, you can count on us. 

Teleperformance is more than just a partner you can trust to manage your collections. We strive to deliver on all the other things that really matter by knowing that your brand is important, listening effectively to your customers, and considering the debt in the context of a customer’s credit history. We understand the need to elevate customer experiences by leveraging great technology.

At Teleperformance, our collections services are rooted in main pillars based on people, processes, and technology powered by advanced analytics. We manage the entire spectrum of collections campaigns, ensuring compliance and transforming delinquent debts into liquid assets. With our strong customer experience foundation, our debt collections strategies are people-first, compliant-always.

With over 100 clients and services in collections and remediation services delivered in over 20 countries, we have improved cost efficiencies from 20 to 40%. Our vast experience of over 40 years in the industry has resulted in over €17B in first-party collections and over €3B in third-party placements.  

We have achieved 99.19% forecasting accuracy compared to the competition (at 95%.) Compliance-wise, Teleperformance’s Compliance Management system allowed us to achieve a 98.89% average QA/Compliance score in 2023. We have established our position as a trusted partner who can help collections clients achieve compliance and quality, elevate customer experience, manage costs, and propel revenue. 

With a vast knowledge of various markets and a full range of interaction channels and the latest technologies, Teleperformance builds collections programs that help businesses manage risks, reduce expenses, and improve processes in a changing landscape.  

For example, a department store chain based in the United States collaborating with Teleperformance saw an increase of 20% in securing payments while outperforming the competition for collections KPIs. By leveraging data, digital training, and interactive mechanics to improve agent skills, the client was able to reform retail credit card collection KPIs while reducing the cost of collections and increasing secure conversion. All this, all while building consumer loyalty and thus minimizing breakage.  

In another case study, a bank based in Spain and Portugal, collaborating with Teleperformance saw an increase of 6% in unique client database penetration and an increase of nearly 10% in balance saved in 2023. To manage the client’s delinquency rates, we developed a blended system where agents can make outbound and inbound calls logged in one campaign, significantly decreasing idle time. A contact rate forecast was also implemented to ensure the most efficient allocation of hours. 

About TP Collections Services – Count on Us

You need your payments collected. We’re specialists in that. But you tell us that’s not all you want. We agree.

You want a partner that knows which approach will deliver the best outcome, for everyone. That’s a leader who invests in innovation and moves at the pace of change. With our unrivalled scale, reach and knowledge, to be trusted with your brand, customers and reputation.

And if you want all that, at Teleperformance, you can count on us to achieve all your needs while maintaining compliance in customer-centric solutions.

Contact Teleperformance today to learn more about our Collections Services.