Consumers now have the flexibility to resolve debts through digital self-serve channels; data and analytics provide a more personalized and helpful experience

Getting debt collection right is about more than money. It’s about knowing the difference between a customer who has simply forgotten to make a payment or someone dealing with a financial hardship. Knowing the difference is important so lenders can provide the individualized customer experience consumers expect when they pay bills, secure a new loan online or deal with collections.

Debt collections processes have remained static over the years. The industry-standard has been to follow the risk relying on standalone solutions that weren’t able to manage the entire life cycle. As the lending landscape has evolved, with many new and existing choices to access credit, complexity and costs have evolved as well. Collections costs have grown significantly. According to Federal Reserve, consumers accounted for $29.3 billion in charged-off credit card debt in 2016, a 15 percent increase over 2015. Lenders are trying to adapt to these market changes while managing against potential increases in delinquencies.

Experian® has launched two solutions, eResolve™, and PowerCurve® Collections, to give consumers an easier way to resolve their debt and to streamline the management process for businesses. eResolve is the first self-service platform to help consumers negotiate and resolve past due obligations while PowerCurve Collections brings together data, decisions, and the collections workflow in a single, unified system.

Helping consumers ease the debt process:  eResolve is the first self-service platform that acts as a virtual negotiator for consumers to resolve their debt obligations. Through digital mediums, lenders can offer consumers options for payments, payment dates and the ability to negotiate terms without interacting with a collector. This tailored approach helps eliminate aggressive collections tactics so lenders can build trust through convenience. It also reduces lender costs, increases returns and improves the overall consumer experience while elevating the collections process into the modern age.

Making the process of debt collection easier for businesses: PowerCurve Collections gives lenders an end-to-end debt management process with insights to inform their actions. Every contact with a customer is an opportunity to strengthen the relationship, and PowerCurve Collections can drive decisions like how often to contact customers and the most effective way – and times – to reach them. The best action could be a high-touch outreach or an automated effort that connects customers to a virtual platform to negotiate their debt. Sometimes doing nothing is the right approach, and understanding which customers are most likely to pay on their own is critical to that decision. PowerCurve Collections can handle these actions easily using a cost-effective collections process that focuses on customer satisfaction.

These new solutions complement the existing suite of Experian’s origination and customer management solutions that refine debt management and improve collections performance.

Source: Experian Press Releas