According to predictive analytics and decision management software company FICO, the rising consumer credit market in Australia and New Zealand (ANZ) is driving the need for efficient collection strategies.
A survey of 49 senior collections managers at banks, utilities and telcos in ANZ found that 80 percent of them expect collections cases to increase by as much as 20 percent this year, reported FICO. Respondents also indicated that they are using multiple channels to reach customers about debt, with automated voice messages and SMS being the top two channels used by collections channels.
In line with this, FICO offers its Client Communication Services (CCS) to help organisations send SMSes to their customers to remind them about their debt. According to Ross McGown, FICO's managing director of CCS in Asia Pacific, doing so might help "drive increased response rates." This is supported by the finding in which more than two thirds of the respondents said that FICO's CCS has added at least US$1 million to their bottom line as compared to the previous year.
"As citizens in ANZ spend more, organisations are placing higher importance on increasing the efficiency of collections," said McGown. "There is a desire to reduce bad debts while improving the customer experience. Automated communications achieves this by scaling up the number of people who can be contacted while also customising the interaction to the customer," he added.
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