Asking customers to pay overdue invoices and payment plans is a standard part of debt collection performed by all companies. However, trying to get them to settle their accounts on time remains a major challenge. To put this into context, a report from Intrum Justitia revealed that 57% of businesses in Europe claim to have problems with liquidity due to late payments, with Greece topping the list (96%).
In most cases, debt collection strategies remain complex, inefficient and outdated. In today’s fast-paced, digital world, customers demand flexibility, accessibility and choice. Settling a debt needs to feel easy and painless, not a process consisting of unsavoury letters and multiple phone calls at inappropriate times of the day.
This is where artificial intelligence (AI) comes in. Over the past couple of years, debt collection has been disrupted by AI. AI is enabling companies to use advanced analytics, behavioural science and machine learning (ML) to their advantage. It allows companies to seamlessly automate their debt collection strategy and drive their average days sales outstanding (DSO) down.