Fintechs are shaking up the collectibles market
Through a white paper that takes the pulse of the collection market, GCollect and BigBoss bring together reviewers (Edenred, Engie, etc.) who share their experiences in the market with ethical violations.
The lines of the collectibles market are moving. Gone are the famous muscle methods of “debt hunters”, quit letters with a threatening tone and demanding lawsuits, phone tracking even at work… new digital players are coming to the rescue of the collapsed debt collection. ethics market and nevertheless weighs several billion euros.
Let’s talk about the exact numbers. According to the ANCR, the amount of unpaid debts in France is 56 billion euros every year. It is enough to prove that the restoration procedures have a stone in their teeth. Knowing that there is a card to play, a handful of fintechs are coming to clean up the sector. The idea: to simplify procedures by digitizing them, making them more transparent and more humane, with the sole aim of protecting commercial relations. Florian Ait Mamar, Vice President of Perspectives and Innovations of the Association of Credit Managers AFDCC, points out: “The digitalization of the collection process makes it possible to make new recovery methods more accessible by highlighting the inconsistency of classical pursuit. strategies based on a single or different agenda depending on the type of client. Reminder its agenda is modulated, it changes according to events, it is no longer fixed, and also thanks to machine learning it allows to adapt its reminder to the interlocutor”.
Florian Ait Mamar’s words are not accidental. It was collected in a trendbook by fintech aggregator GCollect and lesBigboss, a BtoB specialist that brings companies and service providers together during networking events. “Collection: making cash collection an ethical approach!” », the over fifty page white paper not only brings together a range of opinions from decision makers and financial experts on digitizing the collection sector and the keys to a successful collection procedure. Far from the same. The book also includes research from YouGov, an institute that takes the pulse of this market and provides guidance to credit managers.
The maximum level of transparency with Fintech
Figures in the collectibles market, research is full of them. Example: while nearly half of business leaders and decision-makers in the financial sector of large companies have a bad image of collection players, 71% of respondents say that the arrival of fintechs could change their perception of the market… The latter, a split payment proposal for debt spreads, offers a real set of tools, such as solutions to facilitate debt repayment (Paypal, Google Pay, Lydia) or even a platform to manage debt monitoring. “With fintech, the level of transparency should be maximum,” said Déborah Chanson, Director of Credit Management at Edenred France. The customer should be able to get real-time updated information: follow-up level, qualification, call report. It is important for collection companies to submit regular reports so that they can quickly adjust scenarios and strategy depending on the results obtained.”
Another decisive benefit for decision makers: time savings. “The observation is clear: Refusing to pay unpaid invoices to the accounting department – which is already overloaded – is ineffective, explains Xavier Cruchet, Administrative and Financial Director of Ingredia Dairy Experts. This type of task in particular adds value to the work of accountants who sometimes take current documents without knowing their intricacies Moreover, it can significantly affect relationships with customers even if they are in default.”
AI as a decision support tool
For decision makers, there remains one important factor that fintechs should not neglect: personalization. “Can you trust AI to personalize your collection processes?” half say, “Yes, but only if technology is combined with human intelligence” (28% do not trust this technology for their recovery). Understand here that while technology makes processes more fluid, dialogue remains essential. “Personalization is the key to collecting outstanding invoices,” adds Xavier Cruchet. In this regard, AI profiles the customer and knows when to follow up to better engage with the customer. But people also have a role in this process. A monitoring and intervention role if tracking is not successful: thus, it complements technology and ensures that communication always includes a human component to reassure the customer. »
Same story with Joffrey Eclancher, Credit Manager at Alliance Healthcare: “What’s important to understand is that first of all, knowing the customer well (history, paying habits) and gathering data makes this collection more efficient. So yes, AI, decision as an aid in acceptance, it is a key tool in the customer approach. But AI intervenes only in addition to the human. Finally, the human includes the customer approach through artificial intelligence, in the sense that it first defines the AI models and matrices, and finally interacts personally with the customer. This is perhaps what collection should be: a simpler and faster procedure thanks to the contribution of technology while bringing the human touch through dialogue and kindness.GCollect calls it smart collection.
