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The Future of Collections

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The Future of Collections

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We live in a digital world, but has business' debt collections practices embraced this new medium? Discover the latest trends in the collections space - from mobile to virtual agents.

We live in a digital world, but has business' debt collections practices embraced this new medium? Discover the latest trends in the collections space - from mobile to virtual agents.

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The Future of Collections

  1. 1. The future of collections Digital collections and the consumer
  2. 2. ©Experian2 “The future has already arrived. It's just not evenly distributed yet.” — William Gibson 5/25/2017 Experian Public
  3. 3. ©Experian3 Consumer debt 5/25/2017 Experian Public 85.3 77.8 44.9 31.8 28.1 26.3 25.5 29.3 2009 2010 2011 2012 2013 2014 2015 2016 Totalcreditcardcharge-offdollars,$Billions 15%↑ Regulatory trends • Regulatory uncertainty and pressure • CFPB limits call attempts • FCC ruling “one and done” • Vendors are an extension of FI Client trends • Banks keep debt in-house • 3rd Party consolidation • Subprime credit card lending is up • Sub prime auto lending is up
  4. 4. ©Experian4 The seismic-shift to digital has changed how consumers interact with their providers • Consumers are hyper-connected and have numerous preferred channels • Multiple touch-points lead to a purchasing decision • A personalized, consistent experience across channels is the new standard “Multi-channel customers are increasingly the most sophisticated, demanding and time-starved customers; ….” — Deloitte Consulting Demand for frictionless and seamless customer experience 5/25/2017 Experian Public
  5. 5. ©Experian5 The takeover of the Millennials 0 10 20 30 40 50 60 70 80 90 2014 x xx 2050 Millennials Gen X Baby Boomer Silent Millions 5/25/2017 Experian Public
  6. 6. ©Experian6 Generational Financial profiles 5/25/2017 Experian Public Average VantageScore® Average debt Average debt excluding mortgage Estimated average income Bank card balances Bank card utilization Millennials 625 $52,120 $26,485 $34,430 $3,403 43% Generation X 650 $125,000 $26,670 $50,400 $6,752 41% Baby Boomers & Silent 709 $87,438 $19,217 $46,340 $5,603 25% National average 667 $88,313 $23,089 $46,790 $5,340 34%
  7. 7. ©Experian7 Connecting with the digital consumer 5/25/2017 Experian Public
  8. 8. ©Experian8 Elevate collections into the digital age 5/25/2017 eResolve™ gives your clients a digital communication channel Manual collections practices Consumer in the digital world # No Caller ID eResolve™ Frictionless consumer experience • Digital (mobile and web) • Non-threatening • Resolution-driven • At the convenience of the consumer’s place and time • Self serve / cost effective
  9. 9. ©Experian9 eResolve process Debt resolution options 5/25/2017 Experian Confidential Invite consumer • Email link • Web site • Text link Get started • View debt details Pay in full • Cure Options (Pre C/O) • Pay in full in 1 payment • Pay in full over time • Defer payment up to 14 days Negotiate to pay less • Settle in 1 payment • Settle over time • Defer payment up to 14 days Counter offer • Multiple options to resolve • Several attempts to negotiate Offer accepted Consumer has already accepted the payment plan Payment set-up • Client-consumer agreement • Regulation E disclosure • E-signature • Payment portal Summary • Debt details • Debt resolution details • Payment schedule • Client-consumer agreement Consumer logs in
  10. 10. ©Experian10 5/25/2017 Experian Confidential 999 2017$75.00$300.00 4111111111111111 May 2020 adam@sample.com Adam K Fellow
  11. 11. ©Experian11 • Consumer preference has changed to digital • To maintain performance a digital strategy must be employed • Engage the consumer in the digital medium they prefer: – Text – Avatar – Email Conclusion 5/25/2017 Experian Public
  12. 12. Experian.com/eResolve

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