Debt collection is one of the bigger challenges faced by banks and debt collection agencies. The uses of artificial intelligence, ML and predictive analysis in financial institutions are expanding. Let’s have a detailed look at uses of artificial intelligence in debt collection agencies

1. Payjo – AI Assisted Banking Platform
Discover the uses of artificial intelligence, ML and PA
in the debt collection process

2. Payjo – AI Assisted Banking Platform
We’re in an era where everything is either data-driven or old school. To avoid being the latter, the uses
of artificial intelligence (AI), machine learning (ML) and predictive analytics (PA) in banking and other
financial services are being recognized. More than being just buzzwords, AI, ML, and PA have proven,
practical applications at banks in lowering expenses, enhancing customer experience and generating
higher revenue.
How AI, ML, and PA aid debt collection
In the US, over 30 million people have at least one debt in collection. Adding to this data Federal
Reserve Bank says that the total American debt is close $13.5 trillion. The enormity of the ‘debt
collection scenario’ triggers questions like, ‘How many people will be able to repay the debt?’ and ‘How
are the FIs going to collect such a huge volume of outstanding debt?’ There are added problems like
customer complaints on insensitive debt collection procedures, non-compliance, low agent
productivity, and high overhead cost. The ideal solution is a proportionate blend of AI, ML and PA
added to the debt collection process.

3. Payjo – AI Assisted Banking Platform
Artificial Intelligence in Debt Collection
Uses of artificial intelligence in debt collection extends from sending automatic reminders to consumers
to reducing the risk of compliance. Artificial Intelligence has already created a constructive disruption in
the banking industry.

4. Payjo – AI Assisted Banking Platform
Machine Learning in Debt Collection
An AI Bot can provide solutions to sensitive banking problems like debt collection by personalizing the
experience for each consumer. This is only possible with the help of Machine Learning techniques. ML
technology guides a debt collection agency in assessing the creditworthiness of a customer, making
accurate assumptions about how, when and where to reach the consumer, thereby improving the
productivity of a financial institution.

5. Payjo – AI Assisted Banking Platform
Predictive Analytics in Debt Collection
Predictive analytics or data-driven debt collection process is considered to be revolutionary. It can be the
ultimate game-changer in the debt collection process. Several letters and emails are being sent to a
customer in order to increase the likelihood of repayment.

6. Payjo – AI Assisted Banking Platform
Millennials prefer AI as a debt collection agent over humans
Millennials are constantly looking for new and improved banking solutions and are more open to opting
for loans. They are also easily dissatisfied and more outspoken about their negative experiences with
financial institutions when it comes to debt collection methods.
Since 2011, the Bureau of Consumer Financial Protection has received 400,500 complaints related to
debt collections methods and procedures from consumers in the 21-30 age group. This is 27% of the
total complaints received. The complaints relate to inappropriate communication by a debt collection
agents, non-intimation of due dates, gaps in communication, inability to express problems and issues
causing payment delays, the agents’ inability to provide workaround solutions or flexible payment
options.

7. Payjo – AI Assisted Banking Platform
At Payjo, we are in the process of implementing an AI debt collection solution at a large bank in the
USA. We are also engaged with other banks and credit unions who have expressed interest in using AI
to overcome many of the challenges in debt collection. Our clients tell us that their consumers prefer
talking to an AI bot over a human agent when it comes to discussing their repayment options. The
reasons this growing preference are many and Payjo strongly recommends every financial institution to
explore the benefits of AI in their debt collection process. AI is guaranteed to increase your debt
collection rates while improving the customer experience associated with debt collection.

8. Payjo – AI Assisted Banking Platform
Call us or email sales@payjo.co to set up a demo of our AI voice assistant and see how we
can help your bank in its digital transformation journey.
To Know more about Discover the uses of artificial intelligence, ML and PA in the debt collection process