Addressing the Staffing Shortages in Debt Collection Space

An increasing concern regarding staffing shortages is noticed in the debt collection arena, underlining the need for achieving productivity in debt collections.                                                         

FREMONT, CA: A digitisation-driven transformation is critically reshaping varied sectors in the global space, and the debt collection sector is no exception. As a result, consumer finance collections have been elevating and transforming seamlessly in recent times and are anticipated to undergo multi-dimensional shifts in the future with no signs of a slowdown. The debt collection industry is likely facing various critical trends in the arena, which, when employed, open up formidable opportunities.

Various researchers in recent times have concluded that consumer communication with customer service is maximally dependent upon three varied factors. That is, nearly 49 per cent express their interest in talking to a live agent by phone, while 47 per cent prefer email, and 45 per cent settle for online chat with live agents. However, an induced person-to-person interaction holds crucial significance and is likely separated from other modes of communication, per the crucial importance of omnichannel investments for collections.

The downturn presiding in the macro economy is anticipated to trickle down to the collection agency level, with clients passing down both the margin pressure and surging delinquency volume. Hence, agencies that are positioned to manage and withstand the dual pressure hold a firm investment experience in technology, thereby increasing the collection scale across all channels. Deploying advanced capabilities like artificial intelligence (AI) and machine learning (ML) enhances the consumer desire for human connection by supporting interactions and providing options in real time, regardless of people's availability.

Similarly, rates of unemployment are also facing crucial downturns and stick at about 3.6 billion in the current scenario, raising the challenge scale for hiring processes. Hence, consumers, preferences for live agents to communicate critically indicate that the population in the debt collection arena will likely remain unaffected by automation procedures. Staffing shortages in the debt collection arena have emerged as a major concern in the debt collection space; the arena, however, will remain competitive in the future. Scientists mark that agencies that made technology-driven investments, laying off 20 per cent of the collector staff, are experiencing increased productivity on average by nine per cent of the remaining agents. 

However, a layoff in an agency is scarcely necessary to achieve productivity; due to this, most enterprises operate with lean teams and acquire support from technology. It aids in increasing productivity with fewer agents, decreasing ramp time, slashing the after-call work to increase productivity, and eliminating dull administrative tasks, thereby improving job satisfaction in the arena.