Authored by: Siddharth Agarwal, Founder and Managing Director, Mobicule Technologies

MUMBAI, 4^th APRIL, 2024 (GPN): In the past decade or so, several industries have undergone drastic transformations as a result of technological advancements. The debt collection industry is one of them, as it adapts to keep pace with the ever-evolving compliance requirements and changing consumer behaviour. At the heart of this transformation lies training and skill development for debt collection professionals. 

Like in any other industry, attaining success in debt collection is linked with the knowledge and skills of the people executing the task. But conventional debt collection tactics no longer stand valid and are being swiftly replaced with the new-age “phygital” (a blend of physical and digital) strategies, thus transforming how the industry approaches debt collection. 

This means, staying abreast with the fast-moving trends and regulatory mandates is not a choice but a necessity for agencies and debt collectors, which requires ongoing training and skill development. More than simply learning how to use a platform or software, training equips employees with the underlying principles of debt collection, from customer relationships and compliance risks to operational efficiency and data analysis. Below, we will identify why it is crucial to invest in training and what it must entail!

Impact of Employee Training in Phygital Debt Collection 

• Less legal risks: The area of debt collection is incomplete without a mention of regulatory compliance. Being aware of the latest domestic & international regulations and adhering to relevant protocols can help reduce the chances of running into legal troubles and at the same time, equip debt collectors with an understanding of cross-border debt collection cases.
• Better productivity and success rate: Investing in training and skill development is one way to improve the engagement levels and retention rates of debt collectors. Besides, training helps them get a complete working knowledge of the platform works, which aids in attaining day to day collection-related tasks, enhancing recoveries, and delivering a pleasant customer experience.
• Reduced operational costs: Automated processes and tools reduce dependency on conventional communication methods and help manage cases more effectively. Offering training and development opportunities to equip collectors with latest tools helps them operate efficiently, reduce costs, and improves overall results.
• Improved customer relationships: When collectors are well-trained, they not only develop professionalism but also empathy and understanding towards borrowers. This paves the way for better customer relationships and results in more amicable resolutions. 

Clearly, a well-trained workforce and the potential of phygital debt collection landscape cannot be underestimated. However, there are certain key components that the training and development program for debt collection should include.

• Debtor psychology: Understanding the mindset of borrowers is essential to achieving recovery success. Thus, curating training programs that help understand borrower behaviour and psychology can equip debt collection professionals with tactics to manage different types of debtors effectively.

• Technological advancements: This is the foundation of any digitally-led debt collection platform. Employees need to be adept at using modern tools and software that the company leverages for recovery purposes. This could include everything, right from CRMs and OBDs to IVRs and data analysis tools. Routine training sessions can ensure they are hands-on with these resources. 

• Customer communication: Debt collection is not limited to collecting debt but also involves retaining and maintaining customer relationships. This is possible only when debt collectors are trained to communicate effectively in both common and vernacular languages – whether it is in the digital context or in person. Training can ensure collectors learn to write professional emails, manage social media interactions, and use chatbots. 

• Domain-specific knowledge: Last but not least, collectors need a thorough understanding of the sector they are operating in to be able to analyze cases and make informed decisions. Training programs that educate employees about the past and latest trends, customer behaviors, and competitor outcomes can help them generate better results and safeguard the collection agency’s reputation. 

As we navigate this complex digital arena, we must be wary of the fact that technology can never entirely replace the most important asset for any company – its people. Thus, getting them trained and allowing them to hone their skills need not be a financial burden, but rather a one-time investment that has the potential to fetch returns for many years ahead.  

(Siddharth is a Computer Engineering graduate from a premier institute of Mumbai University. After working with organizations like Zycus. Mindcraft Siddharth founded Mobicule in the year 2008, with a vision to help organizations leverage the power of mobility and wireless, thereby offering a competitive edge to these organizations by solving business problems. With his passion for technology and entrepreneurial spirit Siddharth has created Mobicule as a preferred mobility partner for India’s blue chip organization with products across 8 Industry verticals)

(Mobicule is a pioneer in products focused on mobile field force and has successfully deployed and managed some of the largest mobile field force implementations across Sales & Distribution, Telecom, BFSI. With its experience and domain knowledge now spanning 2 decades it has established its niche in Debt Collection, KPI & Gamification, and Digital KYC integrated end to end with internal (core banking, EPR, CRM) and external systems (credit bureaus, govt portals). Backed by a strong R&D and adopting the latest and upcoming technologies it has managed to establish a niche market position. Mobicule’s steadfast vision and commitment to add value to its customers, employees, and all its stakeholders has put it on a rapid growth path to attain a leadership position in the business domains it caters to.)Ends/GPN

 

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