In recent years, the debt collection industry has been significantly changing. The pandemic, new regulations, and evolving customer behavior have all impacted the collection process. However, the recent transformation of the industry doesn't stop here. Moreover, new trends keep emerging, shaping how the collection industry works.

Let's not waste any time further and focus on how a leading business debt collection agency must run in order to ensure a seamless debt collection process. 

Digital-first approach

These days companies need to focus on a digital-first approach. For example, in the U.S., retail banking customers are now digital-only, and customer satisfaction improves when there are high levels of digital engagement. Remember, non-cash payments are expected to overtake cash payments with the Buy Now Pay Later model. So it's more about shaping debt repayment behavior.

Collection agencies need to stick to the digitization process wherever possible. When you implement a BPA/RPA solution, this helps you streamline agencies and their workflows to do business more efficiently.

Reg F Collection Practices

Reg F is an update to the FDCPA. The regulation guides collection agencies on how debt collectors can contact debtors. They must also utilize model validation notice, i.e., limiting the number of weekly calls, text messages, and communication via social media.

The law also emphasizes other limitations. It allows collection agents to review contact strategies. A commercial debt collection agency can use its call center data to identify the most efficient channel, mainly focusing on a large customer baseline. This leads to quicker debt recovery.

Run a customer-centric approach

The shift here is towards empathy-based communication techniques. This includes asking the right questions, maintaining a positive tone, and ensuring being as respectful as possible. A professional agent understands the significance of listening more than talking and giving customers control by listing their payment options.

The goal is to help customers solve their problems as quickly as possible. But, you must also keep in mind that, to achieve this, agents must undergo training. Also, it's worth the effort as it means a better experience for both the collector and the consumer, ensuring quick debt recoveries.

Demand for customer self-service

In line with the digital-first trend, a commercial debt collection agency must consider implementing customer self-service channels. With the self-service option, customers can quickly respond to their problems in their own time. It's more about feeling they are in control of the situation. As a result, these customers are likely to make payments as quickly as possible.

Before you jump into this trend, you must analyze the customer data and equally identify customers who would benefit from a self-service system. Here, a multi-channel approach works much better for the customers, ensuring you have access to a seamless experience with preferred channels, including SMS, email, and phone.

You must also keep in mind that demand for self-service is rising; as a result, it's best to consider signing up for a self-service app where customers can manage their accounts easily.

Talent crunch challenges

Finding the right team is an arduous task. Most commercial debt collection agency find it challenging when finding the right talent. Agencies must review their processes and develop better resource allocation practices to help staff cope with the extra workload.

In most cases, it is worth outsourcing a business debt collection agency. It'll pay you to give new employees comprehensive training, helping them quickly solve matters. However, you must also know that there's no one size fits all strategy; therefore, the agency must decide how to allocate resources to achieve results without overloading existing staff. Failure to do so may lead to diminishing effects and high employee turnover.

Final Thoughts

Most of these trends are in one direction. However, now is the right time for agencies to change their approach. Treating your debtors fairly with a customer-centric approach in line with the regulations helps improve the debt recovery process. You must also ensure that workflow becomes more efficient and enhances the agent's reputation.

Customer-centric trends are here to stay; as a result, collection agencies must ramp up their efforts to keep up with the times. At Vital Solutions, we're a leading commercial debt collection agency; we fully comply with regulations and make it a mission to stay ahead of trends.

Connect with us today as we make your collection smooth. Get in touch with us today as we help you meet all your business demands.