Post-loan: The era of AI robots

Transformation Overview

At present, consumer finance companies use methods such as collections scoring models, intelligent outbound calling, and robot collections in post-loan collection processes. They are gradually shifting from the past passive response model to a proactive service approach.

◎ Intelligent collections account for 80% and even more than 90%

Statistics show that more than half of institutions indicate that intelligent collections have become dominant throughout the entire collections cycle, especially that AI intelligent robots can independently complete thousands upon thousands of collection calls.

◎ Intelligent collection methods are becoming increasingly diverse

For specific intelligent collection approaches, collections scoring models, intelligent outbound calling, and robot collections are the three most commonly adopted tools by institutions.

◎ Clear advantages in intelligent post-loan management

Intelligent AI robots can be configured with different personas and tones. Based on different user communication needs and scenarios, they intelligently activate different types of robots to respond to demands quickly.

◎ Three directions for future layout

With the help of technology, scenario development, customer service, and deep alignment and integration with business processes are promoted.

Transformation Challenges

As the further regulation of personal information use progresses, the window for repairing customers’ information after delinquency and converting it into value becomes narrower, and the rate of customers going missing increases. The market has also spawned actions alleged to involve “proxy rights protection.”

◎ Grasp the compliance boundaries of post-loan collection

Problems with violent collection harming consumers’ rights and interests intensified in the past few years and have become a key area targeted for rectification by regulators. Multiple compliance requirements have already been issued.

◎ Balancing the cost and efficiency of collections

In consumer finance, the loan amount per borrower is small. Although intelligent robot collections can address the above issues to a large extent, the degree of standardization of intelligent robots is high, and the initial development cost for robots is also high.

◎ Weak points still exist in human-machine interaction

While the application of intelligent collections robots has become more widespread, there are still weak points in areas such as human-machine interaction. For example, the strategy configuration of intelligent collections robots still lags behind manual collections.

◎ How to effectively transfer non-performing assets

In addition to collections and write-offs, the issue that consumer finance companies also need to address is how the non-performing assets that have already been formed can be effectively transferred, because the average amount of non-performing assets in consumer finance business is low and there is no guarantee.

Solving the Transformation Puzzle

The cutting-edge technologies of the Internet of Things, cloud computing, big data, artificial intelligence, and blockchain are key factors in the financial digital transformation, enabling the expert role of manual collections teams to be leveraged more effectively.

◎ Put end-to-end credit electronic data on-chain

Some institutions are already trying to apply emerging technologies such as blockchain and cloud computing. In overdue loan litigation, companies use blockchain-based evidence preservation technology to put end-to-end credit electronic data on-chain. This makes electronic data become electronic evidence, and establishes a risk prevention and dispute resolution mechanism integrating information retention, evidence fixation, and evidence review and recognition.

◎ Continue to increase investment in technological resources

With the widespread adoption of digital financial products and service models, multiple consumer finance companies have stated they will increase investment in technological resources. Externally, they will provide high-quality financial services with intelligent capabilities; internally, they will be driven by technologies such as big data, artificial intelligence, and cloud computing.

◎ Still cannot do away with traditional post-loan management

In addition to methods such as robot collections, consumer finance companies will also adopt independent manual collections, collection notices by SMS and letters, and outsourced collections. In addition, they will promote collections through court litigation and online arbitration. Furthermore, there are also channels such as compulsory-claims notarization and diversified dispute resolution (such as court pre-litigation mediation, arbitration mediation, and people’s mediation).

(Editor: Ma Jinlu HF120)

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