By Eleanor O'Connor – On
The idea behind machine learning as a tool for debt collection is that if we can input enough useful and reliable data into an algorithm, we can build models that make predictions on debt, consumers, and the industry's direction as a whole, on our behalf. But do those predictive models exist yet? And if so, what have they told us so far? We spoke to Brandon Medlin and Brandon Huisman from LocateSmarter to find out.
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Impact of Machine Learning on the Debt Collection Industry 1:53
As machine learning technology grows in popularity, debt collection agencies are increasingly thinking about how they can leverage their existing data to make better decisions.
Utilizing Machine Learning Tools 2:43
Machine Learning tools will help your debt collection agency do the following with predictive models:
- Find additional value in existing data
- Clean & simplify that data
- Promote efficient decision-making that lowers costs
Communicating With Consumers for Efficient Debt Recovery 4:41
“How do we remain open-minded and stay compliant with the new digital communication era that’s coming upon us?” This is a valid concern that the debt collection industry has about machine learning and predictive analytics.
It’s important to think about what method of communication the consumer you’re dealing with will prefer.
Machine learning and predictive analytics will help you determine the right channel to use in order to reach a specific consumer, to recover debt more effectively.
The focus should be on expanding the number of channels your agency utilizes, rather than eliminating specific channels that may seem outdated such as telephone communications. Most likely, there are still customers that would prefer to be reached in this way. Machine learning will help you determine this.
Machine Learning Tool Trends 12:43
Companies that develop machine learning tools for debt collection agencies are increasingly taking on a “less is more” approach. They’re looking to improve transparency while focusing on implementing individual pieces of the machine learning equation, rather than suggesting a complete overhaul. Currently, the main goal is to enrich a debt collection agency’s existing data and systems.
Looking to Get Started With Machine Learning?
LocateSmarter helps businesses locate consumer information to recover payments, identify fraud, and remain compliant with government regulations.
Learn More About Debt Collection Industry Trends
- Using call recordings for debt collector training
- Empathy in interactions with consumers
- Investing in technology for your agency