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10 Useful Behavioural Framework Models for Debt Collections Nudge Theory: Nudge theory involves subtly guiding individuals towards desired behaviours without restricting their choices. In collections, nudges can include reminders before payment deadlines or suggesting convenient payment options. Loss Aversion: This principle says that people are more motivated to avoid losses than to acquire gains. Highlighting potential negative consequences of non-payment can incentivise debtors to pay. Social Norms Theory: People are influenced by the behaviours of others around them. Informing debtors… Read more

Introduction In an era where personalisation is critical to customer engagement, the collections function for creditors must adapt to incorporate data-driven personalisation techniques. This strategy not only enhances customer interactions but also optimises recovery processes and improves overall customer satisfaction. This article explores the top 10 key elements required to effectively implement data-driven personalisation within a collections function, detailing why it is important, key considerations, and the expected benefits. Why Data-Driven Personalisation in Collections? Data-driven personalisation leverages customer data to… Read more

Introduction In today's financial landscape, leveraging open banking data within a creditor's collections function is becoming increasingly pivotal. Open banking, which enables third-party access to banking data through application programming interfaces (APIs), offers a wealth of information that can enhance decision-making and customer engagement. By integrating open banking data, creditors can refine their collections strategies, improve customer interactions, and ultimately, optimise their financial outcomes. This article explores the key elements necessary for effectively utilising open banking data in a collections… Read more

Ensuring compliance with Consumer Duty and regulatory requirements within a collections function is pivotal for creditors. The evolving regulatory landscape necessitates robust measures to stay compliant, protect consumer rights, and mitigate legal risks. This article delineates pulls from our ROStrategy interview knowledge base to highlight the top ten key elements needed for successful implementation, examines their importance, outlines key considerations, and explores the benefits for businesses. Why Compliance with Consumer Duty and Regulatory Requirements Compliance with Consumer Duty and regulatory… Read more

The assessment of affordability and the identification of vulnerable customers are crucial components within a collections function for any creditor. Implementing effective techniques and tools to manage these processes is essential for ensuring fair treatment of customers, compliance with regulatory requirements, and maintaining the financial health of the organisation. This article outlines the key elements needed for successful implementation, highlights the importance of this practice, and details the expected benefits. Why Assessing Affordability and Identifying Vulnerable Customers is Important Assessing… Read more