Post-loan: The era of AI robots

Transformation Overview

Currently, consumer finance companies, in post-loan recovery such as post-loan collections, use tools including collection scoring cards, intelligent outbound calling, and robot collections, gradually shifting from passive responses to proactive service.

◎ Intelligent collections account for 80% to 90% or more

The statistics show that more than half of institutions have adopted intelligent collections as the dominant approach throughout the entire collection cycle. In particular, AI intelligent robots are already able to independently complete thousands of collection calls.

◎ Intelligent collection methods are becoming increasingly diversified

For specific intelligent collection methods, the top three tools most frequently enabled by institutions are collection scoring cards, intelligent outbound calling, and robot collections.

◎ Clear advantages in intelligent post-loan management

AI intelligent robots can be configured with different personas and voice tones. Based on users’ communication needs and scenarios, they can intelligently call different types of robots to respond to requests quickly.

◎ Three future directions for strategic planning

With technology’s support, it promotes deep adaptation and integration across scenario development, customer service, and business processes.

Transformation Challenges

As further regulations on the use of personal information tighten, the “information repair and revaluation” space for delinquent customers narrows, and the rate of customers becoming unreachable increases; the market has also seen the emergence of activities suspected of “agency rights protection.”

◎ Take hold of the compliance boundaries for post-loan collection

The problem of violent collections harming consumers’ rights and interests intensified even more in the past few years, becoming a key area targeted for rectification by regulators, and multiple compliance requirements have already been issued.

◎ Balance collection costs and efficiency

Consumer finance loans tend to be low per borrower. Although robot collection can largely address the issues mentioned above, intelligent robots have a high degree of standardization and require high initial R&D costs.

◎ Still weak in human-machine interaction

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

◎ How to effectively transfer non-performing assets

In addition to collections and write-offs, consumer finance companies also need to address how to effectively transfer already-formed non-performing assets, because non-performing assets in consumer finance businesses have low average amounts and are unsecured.

Breaking Through the Transformation

Frontier technologies such as the Internet of Things, cloud computing, big data, artificial intelligence, and blockchain are key elements for the digital transformation of finance, enabling the expert role of manual collection teams to be leveraged more effectively.

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

Some institutions are trying new technologies such as blockchain and cloud computing. In overdue loan litigation, companies use blockchain evidence-storage technology to put all credit electronic data on the chain, so that electronic data becomes electronic evidence. They establish a risk prevention and dispute resolution mechanism integrating information retention, evidence fixation, and evidence review and determination.

◎ Continuously increase investment in technological resources

With the widespread adoption of digital financial products and service models, multiple consumer finance companies have said they will increase investment in technological resources—externally providing high-quality financial services with intelligent capabilities, and internally using technologies such as big data, artificial intelligence, and cloud computing as driving forces.

◎ Still cannot do away with traditional post-loan management

In addition to methods such as robot collection, consumer finance companies will also adopt autonomous manual collections, SMS and letter notices, and outsourced collections. They will also promote collections through court litigation and online arbitration. In addition, channels such as compulsion-enforcing notarization and diversified dispute resolution (e.g., pre-litigation court mediation, arbitration mediation, and people’s mediation) are also available.

(Editor: Ma Jinlu HF120)