Debt collection

London debt collection start-up Ophelos raises $ 2.3 million in pre-seed investment – Tech.eu

London-based debt collection start-up Ophelos has raised $ 2.3 million in pre-seed investment co-led by Connect Ventures and Fly Ventures. The company reports that the pre-seed investment will be used to further develop its debt management platform, including through strengthening the engineering teams and client operations. Founded in 2019 by Amon Ghaiumy, Paul Chong and Professor Qingchen Wang, Ophelos is tackling the archaic $ 24 billion debt collection industry through a series of strategic partnerships that help companies improve their customer relationships. The startup relies on AI and behavioral science techniques to optimize communications with customers, offer alternative debt repayment plans and achieve more accurate detection of vulnerabilities. As customers are more likely to engage in these communications, businesses are more likely to collect their outstanding debts. Let’s face it: while there has been a streak of winners in the past 15 months, there have also been a lot of losers. In the UK alone, nearly 9 million people are over-indebted, around 250,000 small businesses are expected to close after Covid-related support programs end, and around 6 million adults are behind at least one household bills during the pandemic. This means that organizations will come and get their money. And as we’ve seen in an impressive number of industries, the old world as we know it is literally history. So why should the collecting industry rest on its laurels? Or rather, should I say, why should creditors rely on the painfully adjusted collection industry? And that’s exactly where Ophelos enters, stage side. The startup reports that early results with launch clients saw a 24% increase in receivables collected, a 28% reduction in costs for businesses, and a 68% increase in customer engagement. By engaging Ophelos, companies gain insight gathered through digital accessibility assessments and vulnerability detection through open banking to help them better understand the financial health of their customers, and model-based analysis. on machine learning is used to detect regulatory and compliance risks. “We launched Ophelos to create customer-centric products and services that nurture trusting and financially healthy relationships between consumers and businesses. The debt collection industry seemed like a natural place to start, as it allows us to understand, diagnose and resolve many of the underlying issues related to financial health. It is also an industry that desperately needs to evolve towards a more technology-driven and, above all, customer-centric approach, ”comments CEO Ghaiumy. “We want to create a world where everyone is financially educated, empowered and equal – reinventing the debt collection industry is just the first step towards our larger goal. ”


Source link