The remarkable rise of digitized payments in India has caught everyone's eye, and the pandemic has accelerated this trend not only in India but in Bharat too. 7422 crore digital payment transactions took place in 2021, and this ubiquity has set the stage for the next set of digital transformations in digital lending and collections.
Despite the pandemic, India's household debt-to-GDP ratio grew from 32.5% to 37.3% in under two years. So, what does all this mean for traditional lenders and debt collection methods? Can lenders afford to delay at the risk of becoming bystanders?
As tech-enabled credit makes its way into the hands of ambitious growth-oriented individuals and businesses in India, lending institutions must harness the benefits of digital collections. Digital-first customer journeys enabled by AI-powered analytics, machine learning, and omnichannel support have produced tangible benefits in reducing non-performing loans, improving the resolution rate, cutting collection costs, and securing customer engagement.
Digital debt collection offers the rare promise of creating a win-win scenario for all stakeholders by delivering better recovery results and ensuring happier customers. It isn't solely about altering the way debt is collected but impacting how borrowers are treated.
In this fireside chat, we will explore the future of debt collection and holistic customer assistance.