Traditional calling-based third-party debt collection has long standing friction caused by rigid scripts, balancing the workload of representatives and lowering the frustration of consumers. When agencies are working large portfolios of past due balances on behalf of an original creditor, the high volume of inbound and outbound calls are often difficult to juggle.
In today’s digital first landscape, voice AI technology is enhancing operations. Let’s go through some key reasons how voice AI offers third-party collections a way to help streamline operations, improve recovery rates and be more consumer-focused.
The Difference Between Inbound and Outbound Voice AI in Debt Collection
There are two main ways voice AI technology is being used in third-party collections, inbound and outbound calling:
- Inbound: The voice AI tool answers calls that come in from consumers. It acts as a resolution and routing agent to take care of the initial steps to verify consumers to help human agents more efficiently handle routed calls. For example, an inbound voice AI tool can verify a consumer’s information, pass off relevant knowledge to human agents and take care of routine requests like setting up a payment.
- Outbound: The voice AI tool calls consumers directly. It can conduct right-party verification, provide account details to consumers and even negotiate with consumers on behalf of third-party collectors in some cases.
How Voice AI is Improving the Consumer Experience in Third-Party Collections
Debt recovery can be an emotional experience for many consumers. There’s a fear of being judged by the person on the other end of the phone. This fear and anxiety can make consumers feel defensive, which can lower their engagement. On the other hand, a consumer discussing a financial obligation with an AI agent takes down these barriers. It’s a judgement-free space where consumers often feel more open to discussing resolution options or hardships they are facing that may warrant a pause in collection activity .
AI voice technology also gives consumers access to higher levels of convenience. AI agents can operate at any time of day, allowing consumers to resolve their obligations when it’s most convenient for their schedule. More advanced voice AI tools have natural language understanding, meaning they can pick up on changes in a consumer’s tone and adjust its behavior accordingly.
Operational Efficiencies Voice AI Unlocks for Collectors
From an operational standpoint, voice AI technology can offer debt collectors some helpful efficiencies. Human agents often get bogged down by administrative tasks that can take time away from helping consumers resolve financial obligations. Voice AI tools give third-party collection businesses greater flexibility in how human talent is used.
- Automating Unworked and Small Balance Accounts: Sometimes third-party collectors leave smaller balance accounts unworked because there aren’t enough human agents. Voice AI helps businesses work more of their portfolio without drastic shifts in operating costs.
- Giving Human Agents More Time for Complex Cases: By automating routine communications with voice AI tools, human agents have more time to focus on complex cases that require a more nuanced discussion with consumers.
- Compliance Standardization: Third-party collection outreach is governed by compliance standards like the Fair Debt Collection Practices Act (FDCPA). Voice AI can be instructed to deliver all the required compliance disclosures on every call to help lower your risk.
How Voice AI Technology Can Help Improve Recovery Rates
Traditional dialing systems often blast outbound calls to consumers in arbitrary batches, which typically leads to low answer rates and spam triggers. Some voice AI tools use machine learning to analyze historic contact data to determine the best time for outbound calls. This is just one way that a sophisticated orchestration of technology personalizes the experience for consumers. If a consumer is talking through a financial obligation with an AI agent, it can adjust based on the unique situation. For example, if the consumer isn’t able to pay the full balance, an AI agent can adjust the approach to discuss possible payment plan options, take notes on the interaction and provide a seamless handoff to a human agent if necessary.
With traditional inbound and outbound collection calls, consumers could be transferred in order to make a payment, wait for a mail-in invoice or sign into an online portal. Voice AI tools can streamline this process and reduce the chance of consumers disengaging by sending a payment link via SMS while maintaining a voice connection. By making the payment process easier for consumers, voice AI tools can improve recovery rates.
TrueAccord Specializes in Third-Party Collections
If your business is looking for a third-party debt collection partner, TrueAccord can help. As the premier omnichannel debt collection agency, TrueAccord leverages data science and AI technology to help your business increase recovery rates while offering a consumer-centric experience. Contact our team today to learn more.