In Focus Collections


Control means choices


Modern technology is important and inevitable in collections, but a backdrop of traditional skills is still required


Julian Winfield Chief executive, Hoist Finance UK Julian.Winfield @hoistfinance.com


From the moment, a decade or so ago, that ‘debtors’ became ‘customers’ in the eyes of the creditor, the debt collection agency, and the regulator, the industry has sought new ways of putting individuals more in control of their finances. The idea of ‘empowering’ people is an


important one. Nobody wants to be in debt, and there is still an ingrained culture, within a certain demographic in the UK, that being in debt is an embarrassment. Some undoubtedly want to pay, but are


concerned about the perceived hassle they will receive from their creditors. Some, therefore, choose not to engage, not


because they do not want to be debt free, but rather because they do not want to speak to a stranger about their predicament.


Customer journey If, as an industry, we are serious about treating customers fairly, and treating debtors as customers, then we have to look at the customer journey, and improve their experience. We have to look at the ‘traditional’ means


of engagement – through letters, telephone calls, and texts – and challenge when and how these are appropriate, and whether there are better ways of communicating. And, if we are really serious about the


experience, then we need to look at how customers are currently interacting, and adapt our own strategies accordingly. It is this thinking that has led to the


development of ‘self-serve’, autonomising the experience and communication between the customer and the debt collection agency, channeling the conversation and giving customers clear and simple choices.


May 2018 In many ways, it reflects the banking


model, and the way that retailers already engage with their audiences. We too need to have our share of their attention, but how is this best achieved?


Self-service Self-serve is a natural evolution. It is being driven by the customer: few of us today want to deal with issues by post or on the telephone, at least when it is not appropriate to do so. We want convenience, and that invariably means dealing with an issue online.


It also means managing that issue in our


own time, when it suits us. As consumers, we get frustrated if we can


only contact a business within certain times, or days of the week, when their call centre happens to be open. We want accessibility 24/7, and we often want to avoid human contact, unless it is absolutely necessary. This is where the debt collection industry


is heading too, reflecting the needs of a new demographic, and a Millennial generation who have probably never written or received a letter in the last 10 years.


Flexibilty If there is a watchword, then it is flexibility. Control means choices. Strategies that allow customers to see their payment history and current balance, safely and securely, online, are fast becoming the norm; apps have also been launched. But there is understandable nervousness


among clients who need to be assured that their customers are being given the appropriate support to make the right decision, and we have a duty of care to ensure the most vulnerable are identified and supported. Vulnerability can be, after all, a transient


We have to look at the ‘traditional’ means of engagement – through letters, telephone calls, and texts – and challenge when and how these are appropriate, and whether there are better ways of communicating


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state, and needs to be carefully monitored. So, while putting customers in control of


their own finances is desirable, we need to strike a balance to ensure that, in trying to do the right thing, we are not making a difficult situation worse. Help at the end of the line must still


be provided, and online communication techniques such as web chat are helpful in supporting a conversation and a dialogue, but they do not replace it. CCR


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