Debt collection

FLOW talks about – Achieving ethical debt collection through technology

With the spread of the Covid-19 pandemic, many industries around the world have been forced to move their business operations online. Many people have started to adapt a work-from-home lifestyle to further prevent the spread of the virus. This shift to a new potentially new standard of living has strongly affected economies around the world, including the Indian economy with an estimated GDP between 7.5% and 10% in fiscal year 2020-2021. Likewise, the banking, finance and credit sectors have also been severely affected. Let’s take a look at the current India credit market scenario.

The current state of India’s credit industry

While the credit sector has maintained a stagnant position in previous years, the year 2020 saw a deceleration in credit growth of 7.6% in March 2020 from 12.3% in March 2019. The rate of Personal loan growth also slowed to 15.7% in March 2020 from 16.4% in March 2019. However, the industry saw gradual improvements in November 2020 but continued to stagnate. In addition, the pandemic has caused more than 30 sectors to increase the debt amounts which represent over 40 crores of INR lakh with the most affected, agriculture and related products with a debt of 9.8 lakh INR. Non-bank financial corporations (NBFC) with INR 7.98 lakh crore of debt, retail and wholesale with INR 5.4 lakh crore.

Covid has made digital switchover a pressing issue

The current pandemic has therefore made the digital switchover an urgent issue for creditors. Although the processes involved in collecting debt have progressed over the years, many still shy away from investing in credit technology due to the unpredictable relationship of lenders with borrowers. Advances in technology and technological adoption today can provide huge amounts of data to help understand borrower behavior, improving borrowers’ perception of collectors.

What can lenders do?

The first step is to ensure that lenders adhere to ethical guidelines in the strictest sense of the word. This means that collectors must have internal ethical guidelines or boilerplate instructions on which agents can build an ethical framework. Let’s see how to best achieve this.

Use of technology for better reliability

Technology has been helpful in promoting innovation and increasing efficiency for many fintech companies. Their main objective is to develop the financial services provided to clients through customer experience management and to reduce dependence on humans. Likewise, it helps operators in today’s world to operate successfully.

For example, a call center enables good quality services by adopting technology that facilitates interactions between operators and borrowers. This means installing the latest hardware and software and making sure they are both running to their full potential. Here, the use of artificial intelligence and machine learning will not only ensure better targeting, but also personalized messaging for borrowers, ensuring personalization and efficiency.

Understanding the borrower’s emotions

The pandemic had caused enormous emotional upheaval for many people. So it becomes very important to understand the emotional burden that borrowers might face at their end in terms of ongoing loan repayments and calls. One of the most important aspects for lenders today is to ensure a strong communication strategy for debt collection and better management of borrowers.

Lenders need to understand their clients’ current situation and therefore sympathize with them by offering them restructured repayment solutions. FLOW is a credit management company that uses fintech to redefine debt collection. He uses fintech to do in-depth research on his clients using multiple data points and thus design a detailed strategy method accordingly.

Their technology isolates aspects such as volume (amplitude), voice strength and speech speed. Taken together, and the resulting emotion model predicts – with exceptional precision – the emotions of the speakers help to understand the emotions of the borrower. Voice analytics solutions help operators predict consumer behavior by monitoring their emotions. This user-friendly approach makes the whole process seamless and ultimately delivers an improved experience for customers.

Gain an in-depth understanding of agent-borrower conversations

Understanding and deepening conversations between agents and borrowers is important in order to understand and analyze tons of data relevant to borrower agent conversations. FLOW uses an approach which is the use of a technique of extracting named entities and keywords.

This approach produces information that highlights trending issues over a given time period. This is achieved by focusing on the frequency of certain words as mentioned during the conversation.

It might sound like a lot, but that’s exactly what debt collectors need to do to understand conversations between agents and borrowers. Likewise, sentiment analysis can be used to target things like the level of voice segmentation, allowing operators to see a clear pattern of changes in feelings during the flow of the conversation.

Considering all of these above factors, it is quite possible to build a healthy relationship between borrowers and lenders and ensure better feedback at both ends.


FLOW believes that the loan collection process should be optimized using agility, intelligent and personalized communication and innovation to ethically thrive in the market. The many options provided above allow lenders to not only be more flexible with their borrowers, but also improve their overall lending and collection experience.

To learn more about them, visit:

Disclaimer: This content is distributed by FLOW. No HT journalist is involved in the creation of this content.

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