FIs demonstrated their ability to quickly pivot and transform during the pandemic to serve the needs of their customers
Due to the economic uncertainty brought about by the pandemic, the collection businesses at many financial institutions (FIs) braced for a sharp increase in delinquent accounts, but customers ultimately performed better than expected. During this critical time, FIs quickly rolled out new digital capabilities to aid their customers while pivoting to remote work.
In a new Impact Report sponsored by Sopra Banking Software, A Digital Debt Collection Future: Consumer-Centric Delinquency Management, research and advisory firm Aite-Novarica Group examines the current state of consumer debt collection at leading FIs headquartered in the U.K., France, and Germany, and notes how trends described mirror circumstances that North American FIs reported in recent Aite-Novarica Group surveys and interviews.
“While delinquent account volume did not spike as originally feared, many collection executives expect an increase as supports begin to subside,” said Leslie Parrish, Strategic Advisor at Aite-Novarica Group and author of the new report. “Institutions have the opportunity to take action now to ensure they can support (and hopefully retain) valuable customers and effectively collect delinquent debt.”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.