The Analysis CSA


Talking digital


Modern technology can provide an excellent tool for engagement with the customer, but there are still hurdles to overcome


Stuart Sykes Board director, Credit Services Association info@csa-uk.com


The digital world has been much in the news of late, not least following the cyber-attack that paralysed parts of the NHS and private firms all over Europe. Whether we like it or not, however, the


digital space is one that cannot be ignored. The genie cannot be put back in the bottle. We need to embrace the good it can do, and this is especially true of the collections industry, where digital is an essential part of customer engagement. Since the first apps were developed a


decade or so ago, we have come a long way, and they are fast becoming the norm. The customer is comfortable using apps for a wide range of services, and sees them as making their lives easier and simplifying their ‘journey’. In the same way that retailers have learned


how to engage their customers using apps, so too must the collections industry. Indeed, quite a number are already


actively looking at how apps can be accommodated within the collections process, such as notifications to remind customers that their card details are expiring, thereby eliminating the need for a call.


conversations where the ‘human touch’ is better deployed. Many conversations have been had


around how the industry can make better use of income-and-expenditure (I&E) forms, or, to be more precise, how the forms can be made easier and quicker to complete, and the information shared. We are all acutely aware of how


the requirement for an I&E can sometimes, in fact hinder, rather than enhance, engagement with customers. Business-to-consumer discussions, around


Our industry cannot impose new technologies, of course, but it must keep pace with what consumers are already using. WhatsApp, Facebook, artificial intelligence, and ‘chatbots’ are all areas currently being explored


Careful balance But there is a balance: reminders can be seen as a nuisance as well as being helpful, and a notification to advise a payment is due, or has been missed, could add further strain to a relationship, rather than helping it. Our industry cannot impose new technologies, of course, but it


must keep pace with what consumers are already using. WhatsApp, Facebook, artificial intelligence, and ‘chatbots’ are all areas currently being explored. The ability, for example, to use bots to identify questions such


as ‘what is my balance?’ will not only speed the answer to the customer, but also free the collections agent to engage in


June 2017


I&Es, could become a thing of the past if we can use triggers with customers through an online portal, but there are regulatory issues that are yet to be overcome. Although it seems like common sense,


sadly common sense on its own is not always enough to make a good idea happen. How this theme develops, and how the new Standard Financial Statement is adopted, will be interesting to watch. Another challenge within the digital space


is the new General Data Protection Regulation (GDPR). Whereas most in the industry are now well briefed, not least through our concerted and ongoing efforts, there are still some concerns, not least in its impact on the use of technology. Within the


next 12 months, forms will need to be ready, and an entire stream dedicated to GDPR will be included in the UK Credit & Collections Conference in September. We will also be dedicating a whole stream to the issue of digital strategy. Digital platforms and tools will no doubt open up a whole new


world of debt collection once we overcome some of the key hurdles that are still holding back their full potential. The key is to find the right balance and keep customer outcomes


at the heart of what we do. I look forward to discussing it in more detail later in the year. CCR


www.CCRMagazine.co.uk 11


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