Category: Data Report

Digital-First Debt Collection Delivers 35% Liquidation Increase for Leading Telecoms

By on May 1st, 2024 in Customer Experience, Data Report, Industry Insights, Product and Technology, User Experience

Telecom Industry Evolves, But Call-and-Collect Can’t Keep Up

The telecommunications industry has evolved hand-in-hand with most consumer communication preferences throughout the decades. From the last remaining landlines to mobile and internet services, it’s challenging to find a consumer that doesn’t subscribe to a Telecom service.

Yet while Telecoms enable customers to communicate and access products and services via digital channels wherever they go, the industry’s own methodology for communicating with consumers who have fallen delinquent on their bills is quite antiquated for the modern world they operate in.

Many Telecoms have traditionally used call centers for collection services to collect charged-off debt, but face mounting challenges all contributing to less revenue:

These challenges are not unique to telecoms, but considering the evolution of the industry it would only make sense that their debt collection practices would also adapt to consumer preference for digital and omnichannel communications.

Future-Facing Digital-First Solutions Deliver Real Liquidation Results

For some of the leading Telecom providers in the US, the time had come to face the declining third-party liquidation performance and reevaluate their debt recovery approach. A more future-forward, effective engagement model was being adopted throughout other industries and it was time for these Telecoms to test the waters of digital-first outreach for late stage collections…and TrueAccord was there to be their guide.

Through a champion-challenger model during the six-month pilot, TrueAccord’s digital-first, omnichannel engagement proved to be more effective at recovering from the late stage accounts. Between multiple portfolios across three Telecom providers, the results tipped the scale so moving forward all accounts would be serviced entirely through TrueAccord’s platform.

Each of the Telecom providers saw notable increases in liquidation using TrueAccord compared to their traditional call-and-collect methods:

  • First Telecom: 35% increase
  • Second Telecom: 7% increase
  • Third Telecom: 32% increase

How did TrueAccord’s digital-first approach deliver these kinds of results? Get the detailed breakdown in our in-depth Telecom case study»»

Are you ready to evaluate your legacy collections servicer against TrueAccord’s proven digital-first, omnichannel approach? Schedule a consultation today!

Consumer Finances, Student Loans and Debt Repayment in 2023

By on March 21st, 2023 in Data Report, Industry Insights

The economy took a wild ride in 2022, and with interest rates continuing to rise, inflation expected to remain relatively high and household savings dwindling, 2023 could be just as challenging. As consumers battle high inflation and interest rates to afford necessities, budgets will be stretched and many will have to prioritize when and where they spend. Unsurprisingly, paying off debt will likely take a back seat to food, housing and transportation needs. But what will that mean for lenders and creditors?

In order to construct a comprehensive picture of the financial landscape for consumers with debt in delinquency, we analyzed data of thousands of consumers in debt collection to explore how they are positioned to handle financial stressors as well as how different financial burdens impact the repayment ability of consumers in debt collection, especially for those with student loans in this tumultuous economy. 

Key Takeaways from the Report:

  • Economic indicators show a rough road ahead for consumers
  • Resumed student loan payments will impact ability to pay debts – consumers with student loans have an average of $11,373 in non-student loan debt, or 92% more than consumers without student loans ($5,917)
  • Student loan holders increased their average number of open trade lines by 10.3% since 2020, while open trade lines decreased by 7.7% for non-student loan holders
  • Consumers with student loans have an average of $811 more in auto loan debt than those without student loans as of 2022
  • Engaging consumers with multiple debts requires understanding, personalization and patience in 2023

Download and read the full report for more insights.