Keeping your customers incentivized to pay their bills doesn’t have to be an overwhelming challenge for finance companies. After all, lending is the crux of your business, but that doesn’t mean collecting your payments has to be a never-ending headache. With a few targeted strategies, you can reduce delinquencies while effectively streamlining your entire debt collections process.
Employ Automated Communications
In order to minimize delinquencies, implement a comprehensive payment reminder strategy. This helps to prioritize your company’s bill for your customers so that they’re less likely to forget (or avoid) paying. You can execute this strategy through voicemails, text messages, and even email notifications. In fact, at least 40% of underbanked consumers use mobile banking tools , and even unbanked individuals are likely to use their smartphones to stay connected. That means there’s already an existing connection between digital communications and bill pay.
Optimize Collections With Big Data
Another tool your finance company can use to target your collections efforts is big data. Your company can utilize behavioral models to identify the customers who are most likely to pay and with the highest returns. That allows you to focus your efforts and reduce delinquencies using truly informed data. These tools can also help you find the best collections methods that are most likely to impact your customers and lead to payment.
Provide Convenient Payment Methods
When all or even a portion of your customer segment is unbanked or underbanked, it’s important to provide payment methods that work for them. Electronic payments may work for some, but not for everyone who’s financially underserved.
A service such as PayNearMe can make it easy for your customers to pay bills with cash at convenient locations in their neighborhoods. In fact, many of our retail partners are open 24/7, allowing customers to pay when it works for their schedule. They don’t have to take time off from work in order to make it to the bank before 5 p.m. just to get a money order. Finance companies, in turn, receive electronic payments as soon as the financial transactions are completed.
You can truly optimize your collections efforts by implementing a few changes that are convenient for your target audience. There are countless tools available to help reduce delinquencies.
For more information on how your finance company can take advantage of PayNearMe, contact us today.