How Mobicule Utilise AI to Improve Debt Collection Process

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Subham Kumar

May 1, 2024 — 4 min read

Siddharth Agarwal, Founder and MD, Mobicule Technologies - How to Utilise AI to Improve Debt Collection Process

This article has been contributed by Siddharth Agarwal, Founder and Managing Director, Mobicule Technologies Pvt Ltd.

The recovery of loans is frequently the top priority for lenders in the field of lending because the risk of defaulting is constant. Lenders are increasingly using technology-driven solutions to help in the recovery process as delinquency rates rise, as long as they stay within the bounds of legal regulations.

Today's digital age is characterized by a discernible trend away from traditional methods and toward digital services and client interactions. This change is especially noticed in India, where a new frontier in debt collection techniques is being shaped by the adoption of Artificial Intelligence (AI) and machine learning (ML). AI has become a crucial component of debt collection operations, providing opportunities for process optimization and streamlining. Integrating AI and ML technology has become imperative due to the increasing demand for quick and effective debt resolution solutions. These developments are radically changing the dynamics of interactions between lenders and borrowers, which will eventually result in better debt recovery outcomes.

Mobicule is leading the way in this technological revolution with its all-inclusive debt resolution system that integrates AI and ML technologies. Through the use of these cutting-edge technologies, Mobicule can classify consumers into different risk groups according to a wide range of factors, such as past banking habits and borrower’s past payment patterns. This division makes it easier to create customized plans meant to reduce the risks involved with debt recovery. AI-powered solutions are excellent at focusing on particular customer groups via the best possible channels of communication, which reduces the workload for both the bank and the borrowers. Our platform can also detect early warning signs of possible defaults by using predictive analytics, which lowers bounce rates and prevents possible financial losses.

Lenders are provided with actionable insights through real-time analytics and customizable dashboards, which facilitate the development and execution of efficient debt resolution plans. Automation features reduce errors and delays that come with manual operations by streamlining communication procedures. Examples include sending payment reminders by SMS, email, WhatsApp, voice bot, and IVR.

Lenders must make sure that all correspondence complies with legal compliance requirements. AI enables omnichannel interaction by using data to start conversations through favoured channels and at the best moments, therefore maximizing communication tactics. Mobicule's AI-powered technology customizes resolution techniques to each borrower's unique scenario, maximizing success, in contrast to traditional one-size-fits-all approaches. The system also effectively handles massive amounts of data, classifying them into relevant legal avenue and expediting the debt resolution procedure. The platform is built intelligently and can be used across delinquency cycle which are pre, early, mid and late delinquency. To sight an example the platform can automate the entire settlement process without any manual intervention if it falls within mandates removing any bias in the processing.

Voice bots powered by AI examines communication between borrowers and agents to provide a more comprehensive grasp of the attitudes and preferences of borrowers. In a similar vein, chatbots driven by AI enable direct communication between borrowers and lenders, guaranteeing prompt responses and improved client experiences.

Artificial intelligence (AI) technologies also provide enhanced security measures by spotting trends that point to previous fraudulent activity and identifying possible threats ahead of time. The re-engagement algorithms powered by AI are essential for promoting borrower compliance since they give priority to contacting borrowers who have interacted with payment links but have not yet fulfilled their obligations. Artificial intelligence (AI) is transforming debt collection procedures by increasing productivity of the team, improving borrower’s experience, working on the engagement rate and eventually deriving better results for lenders.

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, and 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 have put it on a rapid growth path to attain a leadership position in the business domains it caters to.