In the financial technology sector, there are many services that individual companies, known as fintechs, can specialize in. For one such fintech, their focus was powering money for people and businesses through electronic funds transfer and international money transfers. As the company grew, so did the challenges associated with managing past due accounts—a crucial aspect of maintaining a healthy financial operation.
By relying solely on its internal team to manage debt collections by manually sending emails and making outbound calls, the fintech faced significant challenges as it grew with scalability and performance, especially for later stage delinquencies.
To effectively manage increasing volumes of accounts, the fintech recognized they would need to expand their efforts and broaden their reach—but traditional ways of adding more headcount proved to be an impractical solution given the associated costs and time required to onboard new employees.
But a better solution was just a partnership away with TrueAccord.
This partnership meant the fintech could skip the strain of adding more dedicated team members or building in-house programs and instead leverage TrueAccord’s advanced digital and self-serve collections platform. This solution not only improved liquidation performance but also significantly increased collection recoveries on a month-over-month basis.
By optimizing the fintech’s late-stage debt collection operations, TrueAccord quickly delivered impressive results: the fintech was able to collect nearly $500,000 within the nine months of partnership in 2024.
Get the full coverage of TrueAccord’s solution and the fintech’s impressive results by downloading the free in-depth case study here»»
With its growing popularity, one Buy Now, Pay Later (BNPL) faced challenges with the complexity of managing late-stage collection—a hurdle many start-ups face since the majority of a scaling company’s resources are dedicated to bottom-line business goals rather than debt collection.
So as the BNPL continued to expand, accounts overdue by 90 days or more accumulated without a scalable strategy for resolution, making the BNPL vulnerable to revenue loss. But partnering with the experts at TrueAccord would set a plan in place with impressive liquidation and engagement results.
As their first debt collection provider, the BNPL leveraged TrueAccord’s decade-plus of experience to develop a comprehensive debt recovery strategy from the ground up. TrueAccord’s digital-first approach to collections was particularly appealing to the BNPL, aligning with their tech-forward, consumer-centric philosophy, and delivered on several key benefits:
Cost Savings
Automation and Scalability
Enhanced Consumer Experience
Compliance and Expertise
Through this partnership and late-stage debt collection strategy, delinquent accounts were managed thoroughly and efficiently—and their engagement rates were the first in a domino effect of improved results:
45% Email Open Rate compared to industry average of 22.5%
14% Email Click Rate compared to industry average 2.3%
TrueAccord proved more effective for late-stage collections and better aligned with online lender’s empathetic approach to financial services.
For one online lender, providing online personal loans to underserved consumers was not only a core service for their business but also a key part of their company mission. This tech-enabled financial platform offers safe, simple, and affordable credit access to consumers with varied financial histories who lack traditional options, emphasizing empathy and support in their customer interactions.
Historically, the online lender relied on legal avenues for debt collection, a tactic not always in line with the empathetic approach the company championed in their other services. While they wanted to improve their liquidation rates, the lender recognized they needed more of a traditional agency along with their existing legal strategy—but the challenge was to find a collection agency that could balance effectiveness with a consumer-centric approach that could mirror the lender’s empathetic mission throughout the borrower lifecycle. Simply adding a call center-based agency would be counter-intuitive for an online lender with digital and omnichannel collection partners available to provide a smoother customer experience.
During their due diligence looking at potential debt recovery partners that have integrated digital into the consumer communication mix, a new question arose: how would they decide between the newer, digital-focused agencies that have entered the collections space?
Enter the champion-challenger evaluation method pitting TrueAccord against another digital collections provider.
Over a six-month period, the online lender evenly split their available late-stage collections market share 50/50 between TrueAccord and the competitor agency. Although the challenger collection agency provided somewhat similar services for consumer engagement by including some digital outreach along with traditional outbound dialing and letters, TrueAccord’s robust omnichannel approach was backed by over a decade of experience using digital-first communication methods.
And the results would prove that TrueAccord was not only superior in effectively collecting from late-stage accounts, but also in overall mission alignment with the lender’s efforts towards a more empathetic approach to financial services. Even before the online lender began to explore options for collecting on late-stage debts, both the lender and TrueAccord shared a focus on helping consumers; and by partnering together, they were able to provide that consumer-centric approach to financial services throughout the entire borrower lifecycle.
TrueAccord consistently outperformed the challenger to the point where it became clear that the lender was actually losing money by continuing to give 50% of their available market share to the competitor. In fact, over time, TrueAccord’s liquidation rates were 30% higher than that of its competitor.
Together, TrueAccord not only enhanced and improved the lender’s debt recovery efforts but also reinforced their company values to deliver empathy even after delinquency—no small feat in the traditional debt collection industry.
Are you ready to evaluate your legacy collections servicer against TrueAccord’s proven digital-first, omnichannel approach? Schedule a consultation today!
TrueAccord is a machine-learning and Al-driven 3rd-party debt collection company that is reinventing debt collection. We make debt collection empathetic and customer-focused and deliver a great user experience.
Our digital-first approach to debt collection creates a cycle of collections growth:
1. Improve the perception of the industry
2. Provide a personalized experience
3. Build brand equity and collect