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Why Creditors’ Rights Law Firms Are Deploying Multichannel AI

Navigating the intricacies of debt collection is no easy feat—even for law firms specializing in the practice.

Creditors’ rights law firms engaged in collections often deal with hurdles such as staffing challenges, account penetration, compliance with the regulatory landscape, consumer engagement, and the high cost of traditional collection methods. Consequently, these firms are turning to cutting-edge technological solutions to streamline processes, aiming for greater efficiency and cost savings.

Like other areas of the accounts receivables industry, the legal collections field is undergoing rapid transformation. As the sector grapples with these changes, artificial intelligence has emerged as a pivotal tool. In this article, we delve into the impact of Conversational AI on creditors’ rights law firms and explore how a multichannel strategy can improve consumer outreach and debt recovery.

Why Law Firms in Debt Collections Are Adopting Conversational AI

The first—and often daunting—task for any organization involved in debt collection is outreach. It’s a multifaceted puzzle that demands not only reaching the consumer but also doing so in an effective and compliant manner. When dealing with large volumes of accounts, it can be challenging to reach every consumer, and it can be even more difficult to do so efficiently.

Conversational AI has revolutionized this process by automating consumer outreach, as well as the handling of consumer engagement and interactions via various channels, such as phone calls, emails, SMS, and web chat.A multichannel strategy enables collection agencies and lenders to cut costs, improve processes, and meet the diverse needs of consumers.

Here are some of the most common challenges faced by law firms involved in debt collections:

Regulatory Compliance: Law firms and agencies are the most careful and well-informed when it comes to complying with laws and regulations, including the TCPA, FDCPA, and Reg F.

Staffing: Collecting in-house requires hiring and retaining full-time staff, including legal assistants and live transfer agents, which is costly and time-consuming.

Outsourcing: Outsourcing collections to a third-party agency is a common practice, yet it’s an expensive option for law firms.

Call Volume: Maximizing the number of consumers reached, known as account penetration, can be a pain point that some companies end up compromising on, especially when dealing with hundreds of thousands of accounts.

Time and Resources: The last calling attempts before pursuing legal action cost time and resources, including establishing right-party contact (RPC).

How Multichannel AI Can Help Creditors’ Rights Law Firms

Conversational AI handles human-like conversations with consumers; here are some of the benefits it offers in the legal collections space.

An Outreach Revolution

Any entity performing collections must first perform consumer outreach. Multichannel Conversational AI has revolutionized this step by automating a diverse range of outbound communications tactics across multiple channels.

Conversational AI enables companies to automate thousands of consumer interactions within minutes at a fraction of the cost of a traditional collection call. Collection agencies have been relying on this solution for both outbound and inbound collection calls, successfully cutting costs and accelerating the recovery process. The bot can trigger the communication based on pre-determined criteria and identify itself and the collection entity.

This technology must not be confused with an IVR system. An IVR forces users to listen to lengthy menus that are mostly irrelevant. Research has consistently shown that IVRs are not popular among consumers. Unlike IVR, an AI-powered solution like Skit.ai handles intelligent, personalized, and effective conversations with consumers, eliminating wait times and cutting costs.

Multichannel capabilities enable companies to offer multiple channels to consumers, boosting engagement by enabling them to utilize their preferred mode of communication.

24/7 Inbound Support

Conversational AI can answer every single call or message from consumers at any hour of the day and on any day of the week, unlocking 24/7 inbound support for your consumers calling to ask questions or make a payment. Thanks to this technology, you won’t have to miss a single collection opportunity coming your way. 

Right-Party Contact Verification

AI can save a significant amount of time and resources invested in performing right-party contact (RPC) verification. Bots can easily verify RPCs at the beginning of an interaction with a consumer by using the last four digits of their social security number, date of birth, or zip code.

Disposition Capture and Payment

Given the bot’s ability to handle human-like, two-way, and multi-turn conversations with consumers, Conversational AI can provide information on the consumer’s debt and offer ways to pay it off. The bot can therefore capture promise-to-pay and collect the payment in multiple ways: via a live agent transfer, an SMS link leading to an online payment portal, or an on-call card payment.

Live Agent Transfer

Interactions with consumers are not always straightforward, and that’s why the bot is built to identify complex queries and scenarios in which a live agent transfer is necessary. The benefit of live agent transfers is that they’re context-based, as the solution shares the context and history of the interaction with the live agent.

Do you want to learn more about how Multichannel Conversational AI can help your company automate and streamline your collection process? Book a demo with one of our experts.

SkiTalks: Prateek Gupta on Compliance and Go-To-Market Strategies for Conversational AI in Collections

Interview with Prateek Gupta, Director of Sales

What do you see as the most exciting developments or trends in the Conversational AI space right now, and how do you think they will impact go-to-market strategies? 

“Generative AI has enabled bots to accurately discuss a broader range of subjects. Streaming text-to-speech technology has also significantly reduced the delay between analysis and response by bots, making the entire experience human-like. 

Although Artificial General Intelligence (AGI) has room for improvement, Skit.ai is in an excellent position to cater to various use cases in many industries. The immediate impact on the marketing strategy would be an expansion of the Total Addressable Market within the same industry. Expanding to new markets is dependent on relevant regulations, which keep evolving, and our ability to understand the industry-specific nuances so that we can give proper instructions to AI. AGI is expected to overcome many of these hurdles in the future.”

Could you share some insights into how you approach identifying and prioritizing target markets for Conversational AI solutions? 

“For Skit.ai, the current approach centers around finding markets with large volumes of interactions, typically between business institutions and their customers, and with a limited number of use cases. As our technology gets better and faster at fine-tuning Generative AI models to specific use cases, we will drop the requirement of focusing on limited use cases. Any industry that requires a large number of interactions is a feasible market for Skit.ai. Underserved markets are and will be prioritized.”

How do you navigate the challenges of educating potential clients about the value and capabilities of Conversational AI, especially in industries that may be less familiar with the technology? 

“Educating a nascent industry is tough initially; it takes significant effort and time but presents a golden opportunity to become the go-to partner once the solutions start getting accepted. Talking to as many people as possible improves our knowledge of a new industry and gives them a chance to learn about our solution. 

In a typical Skit.ai sales process, conversion ratios are small but build over time. We generally find some early adopters and work hard to help them be successful and turn them into evangelists. We focus on platforms with the right target audience, which has turned out to be an efficient way to pass on the message. 

To expand our reach beyond the limitations of human interactions, educational digital marketing content is beneficial.”

How do you approach pricing and packaging strategies for Conversational AI solutions, considering factors such as market competition and perceived value?

“Delivering value to customers is the only way to achieve long-term success, and Amazon.com is a great example that comes to my mind. Different industries perceive value in different ways. For us at Skit.ai, the trick is to quantify the perceived value in dollars and charge a fraction of that value for our solution. In the current financial market, the second thing we worry about is our gross margins, so we don’t indulge in pricing wars with the competition. We would rather focus on delivering higher value and charging a small fraction of that value while keeping a healthy gross margin.

Looking ahead, what are the biggest opportunities and challenges for Conversational AI in terms of growth and delivery, and how do you plan to capitalize on them? 

“As and when the cost of Generative AI goes down, price-sensitive markets and geographies will present a tremendous growth opportunity. With these technologies being commonplace, the challenge will be to keep finding differentiation in our solutions.”

What are some of the key challenges you face when implementing Conversational AI solutions while ensuring compliance with regulations? 

“Regulations keep changing and are influenced by various factors. Sometimes, you are just collateral damage. Small and medium players in a niche market generally don’t have much influence on regulations. Therefore, the biggest challenge is to keep up with changing regulations that apply to us but are not intended for us. This also derails progress.”

In your experience, what are some common misconceptions or myths surrounding compliance in Conversational AI, and how do you address them?

“The most recent myth is that ‘Robocalls are Illegal.’ While that makes for a good headline, if you read the fine print it’s clear that you can use artificial voices to make phone calls if you have prior express consent, which has been a requirement since 1991, when the TCPA was introduced. Educating our users is one way to tackle this misconception. This is where Skit.ai’s early adopters turned evangelists became more helpful than ever.”

How do you approach data privacy and security concerns in Conversational AI implementations, especially considering the sensitive nature of conversational data? 

“Skit.ai follows all data privacy standards and has invested heavily in making our systems compliant with GDPR, SOC2, HIPAA, PCI-DSS certifications.”

What role does collaboration play between your team and regulatory bodies or compliance experts in ensuring that Conversational AI solutions meet the necessary standards? 

“We are not directly involved with regulatory authorities, but we engage with compliance experts to ensure that our solutions comply with all aspects of the regulations governing our clients and us. Due to the evolving nature of the regulations, this is not limited to the solution’s development cycle but is an ongoing process.”

How do you anticipate future regulatory changes and adapt your go-to-market strategies and product offerings accordingly?

“At Skit.ai, we engage with compliance experts to foresee regulatory changes and incorporate them into our product. We also have product owners who double up as internal compliance experts because they are the ones who understand the product best and can ensure that it remains true to regulatory standards.”

Looking ahead, what do you see as the biggest opportunities and challenges in the intersection of Conversational AI and compliance, and how do you plan to address them? 

“We believe that our solution does not engage in any activity that current (or future) regulations are targeting. Our multichannel strategy and enhancement of our inbound voice solution will help us address compliance hurdles that may arise in the future.”

How does Skit.ai’s approach to conversational AI set it apart from others in the industry?

“Most other AI vendors view debt collection as just another industry in which interacting with consumers represents a significant requirement.”

Curious to learn more about how Conversational AI can enhance your collections strategy? Book a free demo with one of our experts.

How Multichannel Conversational AI Can Reduce Collection Cost

What is Multichannel Conversational AI in Debt Collection?

Multichannel Conversational AI automates interactions across various communication channels—such as voice, text, chat, and email—to engage with consumers through their preferred mode of communication and assist them in resolving their debt.

This significantly improves the consumer experience throughout the recovery journey. Consumers can seamlessly switch between channels without losing the context of their previous interactions.

The Multichannel Advantage

What benefits have early adopters of Multichannel AI seen in the accounts receivables industry?

Implementing a multichannel strategy has enabled industry-leading organizations to drastically reduce the cost of collections. Thanks to the technology, live agents can focus on more complex, revenue-generating tasks, while AI handles the most repetitive and routine tasks. This strategy boosts agent productivity and decreases agent dependency, solving the staffing and resource challenges many financial services organizations face.

Here are some examples of the overall improvements in collections a Missouri-based collection agency experienced by leveraging Skit.ai’s suite of Multichannel Conversational AI.

Curious to learn more about how Conversational AI can enhance your collections strategy? Book a free demo with one of our experts.

Contain BHPH Delinquencies with Multiple Follow-Ups

Buy Here, Pay Here car dealerships need to reach all of their active customers frequently and effectively. Conversational AI can help them do so in a scalable and cost-effective way.

Artificial intelligence is transforming the way car dealerships communicate with borrowers. Thanks to the use of interactive virtual assistants, dealerships are now able to automate intelligent, two-way conversations over multiple channels—voice text, email, and chat. This technology is emerging as a game-changer thanks to its cost-effective and scalable nature.

Based on data from our customers, we have seen that connectivity for a given set of accounts increases proportionally with retries. In other words, to boost connectivity, you should perform multiple follow-ups using Conversational AI.

Connectivity tends to peak at around 5 retries. The frequency and spacing of the retries can be programmed in compliance with TCPA requirements and state regulations.

The graphic below from a collection agency shows that, with 5 retries, the connectivity rate doubles.

Here are our tips to maximize your connectivity performance and boost revenue recovery:

  1. Perform at least 5 contact retries per campaign, in compliance with federal and state regulations.
  2. Leverage multiple communication channels, all automated with AI: phone calls, SMS, email, and chat.

Curious to learn more about how Conversational AI can enhance your collections strategy? Book a free demo with one of our experts.

Faster and Efficient Account Penetration with Conversational AI

Are you grappling with the challenge of reaching out to a vast number of accounts with limited staffing resources?

Is the task of engaging meaningfully with each consumer proving to be a daunting feat? 

How Does Skit.ai’s Multichannel Conversational AI Help With Account Penetration?

Rapid Outreach at Scale

One of the most significant hurdles in collections is the sheer volume of accounts that need attention. Traditional methods involve reaching out to thousands of consumers, which is time-consuming and resource-intensive.

Skit.ai enables collection agencies of all sizes to reach thousands of accounts within minutes. You can automate compliant outbound outreach of your consumer portfolio and ensure 100% account penetration.

Skit.ai doesn’t just enhance outreach efforts; it also enables you to connect with consumers during weekends and after work hours when agents are usually unavailable for outreach campaigns, yet consumers are more inclined to pick up the phone and engage. 

Multichannel Engagement

Why give apples to your consumers when they’ve clearly said they want oranges?

Consumers nowadays have diverse preferences when it comes to communication channels. Depending on their demographics and behavior, they will prefer to use different channels.

Skit.ai offers multichannel engagement capabilities, enabling collections agencies to connect with debtors through their preferred mode of communication. 

Whether it’s sending personalized emails, automated SMS reminders, or initiating interactive voice calls, Skit.ai ensures that agencies can engage with debtors on channels they are most likely to respond to. This strategic approach significantly increases the chances of meaningful engagement and debt resolution, ultimately driving higher recovery rates.

Intelligent Insights and Analytics

Skit.ai provides collections agencies with many actionable insights to guide their decision-making process. It uses debtors’ response patterns to recommend best practices, such as when and how to reach out to effectively engage with debtors.

Merely increasing the frequency of contact with debtors doesn’t always translate to higher connection rates. Skit.ai’s software analyzes data and recommends the optimal number of engagement retries (while ensuring compliance with regulatory bodies) to achieve an optimal connection rate. It can also suggest the optimal mode of communication for better engagement.

Still don’t believe us? Hear it from our customers!

Curious to learn more about how Conversational AI can maximize your account penetration? Book a free demo with one of our experts.