Meet Borrowers Where They Are: Prevent Charge-Offs, Improve Customer Satisfaction and Retention.

The Current State of Collections

As we enter the third quarter of 2023, both lenders and borrowers have their eyes on the macroeconomic horizon. Economists are seeing mixed signals as they aim to predict the severity of an impending recession: employment rates and wages remain strong, but delinquencies and charge-offs continue to rise. Lenders are in a precarious position as they aim to prevent charge-offs and drive customer retention. Recent research indicates that when it comes to reducing charge-offs and boosting liquidation rates, lenders often find themselves without the resources they need to make dramatic improvements.

In our new white paper, we analyze the current state of charge-offs and collections departments in 2023, and review improvements in the digital collections space that can help lenders meet their borrowers where they are and bolster their bottom line.

In short, lenders must have a combination of:

1) Digital self service tools for borrowers
2) Processes in place to make continuous, data driven updates to their collections and recoveries strategy.

According to the Federal Reserve, the average American carries $59,580 in debt, made up of mortgage debt, auto loans, credit card debt, and student loans. This means that borrowers have debts across many creditors, and will prioritize paying off accounts with creditors that are able to engage them in an empathetic and effective manner.

So, how can lenders stay competitive in an ever-changing industry, reduce charge-offs, and create happier borrowers? Download our new white paper to read about the digital, self-service tools hitting the market, and the strategies that can help  teams continuously optimize their approach to collections.

Get the White Paper.