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Entering a New Era of Debt Collections with Conversational Voice AI

Harshad Bajpai

February 7, 2023

Debt collection companies have been automating various parts of their operations, much like companies in other industries. However, one of their core problems—the inability to automate complex conversations with consumers—has impacted their ability to solve their core challenges.

Connecting with consumers to recover payments is at the core of what a debt collection company does. According to a new survey by TransUnion and Datos, communicating with consumers is a top priority for collection agencies. A growing number of agencies are exploring new methods of communication for debt collection, focusing primarily on AI-powered chatbots and voicebots, as well as text messaging.

Conversational Voice AI, with its capability to automate collection calls, solves all significant challenges and ushers in a new era of debt collections. In this blog post, we’ll learn how this technology is dramatically changing the landscape of collections.

How is Voice AI Changing Debt Collections Forever?

100% Account Penetration: A Voice AI solution can initiate and handle millions of calls within minutes, covering an agency’s entire debt portfolio in an impressively short amount of time. This level of automation has never been possible until recently; it’s important to note that over a third of an agency’s files often remain untouched.

Less Dependence on Human Agents: It is hard to recruit a skilled collector, and having a consistent team that can scale up when needed has been extremely challenging for agencies, especially the smaller ones. AI provides the benefit of instant and infinite scalability, making the issue of staffing less concerning. Thanks to end-to-end automation of consumer calls, agencies can scale up and down as needed.

Augmenting Agent Productivity: Voice AI enables live agents to focus on more complex and revenue-generating tasks. Without call automation with Conversational AI, this would be impossible, as live agents would have to spend a lot of time establishing right-party contacts (RPC) and handling time-consuming, repetitive tasks that should be automated.

File Segmentation for Better Recovery: For the first time, collectors can now see the entire picture of their portfolio. As the Voice AI solution goes through the entire portfolio, collectors can see the set of right-party contacts (RPCs), the propensity to pay, and other crucial data that can inform a more strategic and data-driven recovery strategy, ultimately improving collections.

Remarkably Lower Collection Costs: Calls handled by Voice AI cost approximately one-third of a traditional collection call handled by a human agent.

Voice AI Comes with Other Remarkable Benefits. Here Are a Few: 

Lower Compliance and Legal Risk: Voice AI has the potential to improve compliance and reduce the risk of legal issues for agencies. The debt collection space is heavily regulated, and collectors must follow strict compliance rules. With our Augmented Voice Intelligence platform, compliance rules and guidelines such as call frequency, the Mini-Miranda, and other important regulations — both at the federal and state levels — are built into the technology to ensure the Voice AI solution follows them. Voice AI never goes off-script and never has a bad day, protecting both the consumers and the agencies.

Better Decision-making with Data Analytics: Artificial intelligence can analyze consumer data and make informed decisions on the best course of action. For example, Voice AI can use data on a consumer’s payment history, income, and expenses to determine the best payment plan for them. This data-driven approach can lead to more efficient and practical debt resolution outcomes and a better customer experience (CX).

Unprecedented Automation: One of the main benefits of Conversational Voice AI in debt collections is that it automates much of the manual work involved in the recovery process. Debt collectors can use Voice AI to automate tasks such as calling consumers, sending out payment reminders, and recording consumer interactions. This saves time and allows collectors to focus on more complex tasks, such as negotiating payment plans and resolving disputes.

How to Choose the Right Conversational Voice AI Solution Provider for Your Company

The most important thing to remember about a Voice AI solution is that it either works and satisfies the consumer, leading to positive outcomes and recovery, or it will lead to consumer frustration and significantly adverse outcomes. Hence the choice of vendor is highly vital. Here are a few things to consider:

Proven Track Record: To ensure a successful implementation, working with a Voice AI provider with a proven track record in the accounts receivables industry and who can provide a comprehensive and integrated solution is essential. Collection executives prefer to adopt solutions that have been in business in the accounts receivables industry for at least six months.

Ease of Integration: Another priority when implementing Voice AI in debt collections is ensuring the technology is integrated with existing systems and processes. The provider’s capability to integrate with existing systems and other vendors—such as payment gateways—is one of the significant factors that must be considered while selecting a Voice AI vendor.

Ease of Deployment and Use: One of the critical challenges in implementing Voice AI in debt collections is ensuring that the technology is user-friendly for debt collectors and consumers. Make sure that your vendor’s solution is easy to deploy and to use.

Speed of Deployment: The solution must be ready. No promise of building a solution in a few months should be considered, because no viable, working product is ready. Select a vendor who is ready to go live immediately after a series of well-defined tasks required on your end.

Positive Business Outcomes: Look at the results the AI vendors have been about to achieve in the recent past with companies similar to yours. See if these business outcomes and success metrics align with the outcomes you’re hoping to achieve.

Make the Right Choice 

Conversational AI technology is remarkable and has proved its worth in our industry and beyond. The only thing left for debt collectors is the selection of the right Voice AI vendor. Select the right vendor, and it will help you gain a competitive edge and show your tangible positive outcomes in a matter of weeks.

Voice AI technology is about to change debt collections forever; don’t miss out!


To learn more about how Voice AI can help solve your staffing challenges and improve your recovery strategy, use the chat tool below to schedule a call with one of our experts.


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