In an increasingly challenging economic climate, where late payments are rising and consumers face diverse financial pressures, organisations must rethink how they manage their debt collection processes.
The use of alternative data, together with the implementation of AI, allows financial institutions to more accurately assess credit risk.
It’s no longer enough to insist on payment—it’s about understanding the customer, supporting them, and offering personalised solutions. At AlgoNew, we believe artificial intelligence (AI) can be a powerful ally in this paradigm shift.
Why do we need a new vision for debt collection?
Traditional collection models focus on rapid recovery, often at the expense of customer experience. This creates friction, erodes loyalty, and in many cases, damages reputations. Inspired by McKinsey’s “holistic customer assistance” approach, we propose an evolution: from reactive, one-size-fits-all collections to empathetic, proactive, and personalised interactions—enabled by smart technologies.
AI + Empathy: The New Heart of Digital Debt Collection
At AlgoNew, we develop intelligent digital debt collection solutions that combine:
- Real-time data analysis to understand a debtor’s financial, emotional, and behavioural profile.
- Generative AI models that adapt language, channel, tone, and timing for each message.
- Empathetic automation, maintaining human closeness even in fully digital processes.
Benefits of This Transformational Approach
✅ Higher recovery rates: Customers respond better when they feel understood. Personalisation increases engagement and willingness to pay.
✅ Lower operational costs: Automating repetitive tasks frees human teams to focus on complex cases.
✅ Improved customer experience: A well-treated customer, even in arrears, can remain brand-loyal.
✅ Regulatory compliance: Our digital workflows ensure traceability and compliance at every step.
The Future of Debt Collection is Collaborative, Tech-Driven, and Customer-Centric
Financial institutions that adopt a broader vision—leveraging AI while keeping the customer at the core—will not only improve their collection KPIs but also build lasting relationships with users.
At AlgoNew, we’re helping credit firms, banks, and fintechs make the leap toward more humane and effective debt collection. Because behind every debt is a story, and behind every interaction is an opportunity to build trust.
📩 Want to apply this approach in your business?
Contact us to see how technology can transform your debt collection process!
