TrueAccord Featured in Aite Group’s Spotlight on Disruptive Fintech

By on July 1st, 2021 in Company News, Industry Insights
TrueAccord Blog

In a recent report by the Aite Group, TrueAccord was featured in the inaugural edition of the “Retail Banking & Payments Fintech Spotlight”, which highlighted disruptive fintechs with a strong focus on technologies that improve the customer experience. Analysts from Aite Group selected the six featured fintech vendors exclusively based on their level of innovation and their interesting approaches to wider business challenges facing the retail banking and payments market from both bank and customer perspectives.

The key differentiator making TrueAccord an innovative fintech disruptor? Not just taking an old system and making it digital, but using a customer-centric approach and machine learning engine that caters to each individual’s needs and seeks to fundamentally change the way consumers manage their debt. 

TrueAccord directs consumer focused messages to their preferred communication channel at the right time, all in line with federal and state requirements. With automated communications and the consumer’s ability to self-serve, TrueAccord collection agents can service 80,000 accounts at a time, compared to the typical 1,000 to 2,500 accounts that a traditional agent manages on behalf of the financial institution client. In addition, TrueAccord has found that allowing the consumer to propose their own payment arrangements within the institution’s approved parameters makes it 50% less likely that they will break that payment agreement. 

“Taking an existing process, especially one that is historically not consumer-friendly, and overhauling it from the ground up to actually benefit consumers is disruptive in the best way,” said Leslie Parrish, Senior Analyst, Aite Group. “While many companies focus on the consumer experience during the loan application process, very few bring that same attention to providing a consumer-friendly digital-first experience to the collection of that debt. TrueAccord’s unique approach to debt collection serves as a catalyst for transforming the collections industry.”

Excerpt from “Retail Banking & Payments Fintech Spotlight”:

The process of collecting on consumer debt is in need of a serious update, and TrueAccord distinguishes itself as a true stand-out in this industry. Together, the company’s three offerings provide a comprehensive solution set for both financial institutions and consumers. Consumers have significant pain points in dealing with unwanted collector calls and would much prefer to deal with these unpaid debts without having to speak with an agent. TrueAccord’s Recover and Retain platforms collectively provide financial institutions with a way to effectively communicate and collect on accounts at varying stages of delinquency in a way that is hospitable to consumers.

To read the full TrueAccord spotlight, download a copy of the report here.

Klarna’s Digital Debt Collection Journey: Outsourcing Without Sacrificing the Consumer Experience

By on June 15th, 2021 in Product and Technology

Klarna, the highest-valued private fintech in Europe, is on a mission to make shopping simple, safe and smooth, for both consumers and retailers, through its suite of payment products and services. From its inception in 2005, Klarna has not compromised on providing a seamless consumer experience — even when it comes to consumers in collection. 

With a high standard for customer experience and in an effort to integrate collections seamlessly with their product, Klarna initially opted to keep collections in-house. For five years the company had great results with in-house collections, but as Klarna expanded to new markets and added new products, scaling in-house collections while maintaining a best-in-class customer experience strained the company’s resources and became less feasible. 

This led Klarna to begin considering a third-party collection partner. By this time, the collections industry had evolved. New players like TrueAccord were building digital-first collection solutions that vastly improved the customer experience via personalized outreach, flexible payment plans, and a self-optimizing, machine learning-driven performance engine.

It’s easy to underestimate the expertise involved in building an effective, compliant digital debt collection engine, and partnering with the right collection solutions provider would free up valuable internal resources. Klarna’s priority was to focus on their core business and engage an expert partner who would be able to build a world-class collection operation for them — one that would only enhance their consumer experience while not sacrificing brand image. 

“We look at collections partners the same way we look at hiring team members: we only want to work with the absolute best. We wanted to partner with a company that truly takes care of consumers,” said Jan Hansson, VP Debt Collection, Klarna. 

Other key considerations to moving away from in-house collection included, data science expertise, engineering talent, compliance resourcing and industry knowledge. After doing their due diligence, Klarna decided to partner with TrueAccord as a collection solution provider. TrueAccord stood out from competitors in two important ways: customer centricity and digital and multichannel capabilities.

By partnering with TrueAccord, Klarna was able to increase liquidation rates and achieve better holistic results, with retention rate a key indicator. Moving to a partnership with TrueAccord from in-house collection also allowed Klarna to free up valuable internal resources and refocus on their key business functions. Klarna is now expanding their engagement with TrueAccord to include more accounts and looks forward to growing the partnership even more in the future. 

“We are so proud to work with TrueAccord,” said Sebastian Siemiatkowski, co-founder and CEO, Klarna. “Putting technology to use for the people instead of against the people is the next generation of tech.

To learn more about TrueAccord’s work with Klarna, read the full case study or check out our recent webinar, “Digital Debt Collections 101 with Klarna”.