Competitive factor AI: New technology will shape credit and receivables manage...

Competitive factor AI: New technology will shape credit and receivables management

6 May 2019

Artificial intelligence has been a hotly debated topic in the financial industry for years. To date, the potentials in the areas of credit and receivables management have hardly been in the focus. Wrongly so! After all, technology has the potential to change the business area in the long term. With new AI-based solutions, Collenda is now positioning itself as a European pioneer in this field.

The motives for using artificial intelligence are obvious: "Efficiency, effectiveness and user experience" can be massively improved. Finally, it is important for banks to focus more on automation and cost reduction potentials (efficiency) and at the same time to optimize the risk control of lending and the success in receivables management (effectiveness). The use of artificial intelligence in the backend of financial institutions is essential in the medium term in order to remain competitive in this highly competitive industry. In addition, the "Experience" area is increasingly moving into focus. At the direct interface to the customer, the potential of the new technology is immense and offers the opportunity to simplify processes for the customer and to bind users even more strongly to their own company and its service offerings. Fast, uncomplicated and friendly customer communication has a decisive impact on the result.

The new technology can be used in a wide range of applications. From functions in the backend to AI-based communication with every customer. Revolutionary approaches can already be found in Collenda's current solution suite. Two application cases are described as examples:

Dealing with non-performing loans - If the borrower is no longer able to make payments to the bank, it can support him via a self-service portal. Online the customer has the chance to restructure the loan. Thinkable assistance is possible here additionally over Chatbots. These would have to try on the basis a fixed set of rules to initiate necessary steps and to help the customer with its new planning.
By including customer-specific data, but also by recourse to historical data of other customers, a payment rate and term that is feasible for the debtor can be determined via AI. The bank's proposal could be worked out in detail via a chatbot with the customer. Voice recognition programs have long been so mature that they can replace a human consultant in standard procedures.

Choosing the right channel - The psychological component of receivables management should not be underestimated. In times of Omnichannel contact opportunities, the company is faced with deciding which form of client contact will work best. While some customers are more likely to respond to short-term payment requests via WhatsApp, other users are more likely to respond to strict postal letters. Here, too, the AI can make recommendations about the right channel or the most effective tonality. Similar to determining the best rate, historical data from other customers and individual empirical values are used here.

With use cases like these, Collenda is already the technology leader for AI-based applications in Europe. We will continue to expand our offering and automate and simplify further processes using new technologies in the future. If you are interested in the opportunities and potentials of AI, please do not hesitate to contact us.