Modern Collections Tools

Collections is a crucial part of the lending value chain. The transition away from classic outbound calling to digital interactions has created the need for more technological innovation in the collections space. This article provides a perspective on new collections technology tools including Kompato, TrueML, January, Quanta, Bounce, and Domu.

Three reasons to use one or more of these services

Larger testing sample to optimize creatives, user interfaces, offers, and channels and to build robust AI/ML models for customization.

Many of these collections tech firms have access to millions of delinquent accounts to run creative tests, UI tests, and to construct AI/ML models for optimization. Lenders that are either smaller or new to this space are lacking in the basic statistical sample to drive optimization. Smaller lenders may want to use these firms’ offerings ad-infinitum due to this sample advantage. Larger lenders may want to use one or more of these firms in the short run to jumpstart their collections efforts in general.

Cutting-edge & channel-specific technology

Some of these firms have constructed voice and chat capabilities with the deployment of Gen AI/LLM tech that will be difficult to replicate for lending firms without massive investment in the space.

Keeping your internal tech team focused

Technology teams applied to marketing, distribution, underwriting and product can win the game in the lending space. It’s rare that collections strategy and optimization will win the game for a lender. Accordingly, keeping your tech team focused on strategic wins is a smart play. Why distract them with collections tech when excellent options already exist?

What should drive your choice(s) on these tools?

Who has and will have the most sample for optimization and uses it well?

Particularly for small to mid-sized firms, we recommend going with players that have larger client bases (in your geography) and have shown the ability to optimize with that sample. Optimization includes both testing of creatives and offers as well as modeling on results. Standouts in this space are TrueML, January, and, (with international scope) Kompato.

How easy is it to use their strategy optimization tools?

Though you will want to rely on these firms’ learnings for strategy optimization you will also want to control how they operate. Are their tools thorough and easy to manage? Firms like Bounce, TrueML, and Kompato stand out in this space. Also, although not a SaaS platform, Quanta specializes in services to drive strategy optimization.

How much do you want Gen AI to be driving interactions?

Having Gen AI actually do collections calls is very much a possibility today. Is your firm ready to take that leap? Do you want to take that leap in chat AND voice? If so, we see firms Kompato and Domu as best in this space.

A deeper review of options is needed before one can make the call on these services. Drop us a line if you’d like to have a discussion on this front or learn more about the full set of features from the companies mentioned here. Contact us at gautam@arica.co or jim@arica.co.