Technology in First-Party Collections: Improving Engagement to Bring and Keep Borrowers Current
- Date:December 26, 2018
- Author(s):
- Test
- Report Details: 16 pages, 4 graphics
- Research Topic(s):
- Digital Lending
- PAID CONTENT
Overview
The impact of borrowers’ defaulting on their debts can be detrimental for both borrowers and lenders; the lenders because they face significant costs in collections associated with each loan and the borrowers because it could take a toll on their personal and professional lives. The extent of the collections problem is glaring considering that the age-old predictive dialing strategies, used by lenders to connect with the borrowers, have been failing dramatically. Enhanced collection strategies, including the use of digital technology to connect with borrowers, represents an opportunity to not only bring more borrowers out of delinquency but also to bring down the cost to collect and to reduce the risk of defaults in advance of another economic downturn.
Key questions discussed in this report:
- How common are delinquencies in lending and who is being affected?
- Which contact channels and payment methods do borrowers prefer?
- What are some of the regulatory risks that lenders face with first-party collection efforts?
- Which types of technology can lenders use to better align strategies with borrowers' expectations?
Companies Mentioned: Corelogic, Flagstar Bank, GC Services, Interactions, Katabat, Nuance
Methodology
Consumer data in this report is based primarily on information collected in a panel of 2,000 consumers in an online survey conducted August 2018. The margin of sampling error is +/- 2.19% at the 95% confidence level.
Learn More About This Report & Javelin
Related content
2025 Digital Lending Trends
The pressure will mount in 2025 for traditional lenders and the vendors that serve them to make foundational strides in using digital channels to win share of mind that leads to sh...
Earned Wage Access: How Banks Can Do Better for Workers Facing a Cash Pinch
The Consumer Financial Protection Bureau dealt fintechs focused on earned wage access a blow when it issued an interpretive ruling that their products will be considered loans subj...
Embedded Lending: Banks Get a Second Chance to Stake a Claim
A market scan by Javelin Strategy & Research found that few banks and credit unions are active in embedded lending, leaving fintechs such as Affirm, Afterpay, Apple, Klarna, and Pa...
Make informed decisions in a digital financial world