Shaping The Future Of Debt Collection Using AI

The Problem

Debt levels for individuals and companies across the world have been increasing. Not all borrowers of a bank can meet their obligations, leading to the need for debt collection. The pandemic has further aggravated these concerns. Traditional and outdated approaches to debt collection do not reflect the changing economic condition. They also are prone to human errors and involve substantial expenses. How can banks use technology effectively to improve debt collection?

Solution

Machine Learning models on Kranium can be used by debt collectors to predict which borrowers are likely to pay back. This allows the collectors to target higher priority customers to collect debt. The models will also provide information on the top reasons why the borrowers are likely to pay. The collectors can use this information to personalize their approach.

NLP models can also help the collectors analyse previously calls for debt collection for understanding specific uses of language by successful debt collection agents, common objections by borrowers and how they’re best overcome. Compliance violations can also be identified.