What are the benefits of digital self-service?

Digital self-service in debt collection offers several advantages:

1. 24/7 Accessibility: Customers can access information and make payments at any time.
2. Reduced Stigma: Some individuals feel more comfortable managing sensitive financial matters privately online.
3. Efficiency: Automated processes can handle routine tasks quickly and accurately.
4. Cost-Effectiveness: Digital solutions can significantly reduce operational costs.

A common misconception is that a digital-first approach to debt collection means abandoning customers who prefer traditional communication. This doesn’t have to be the case. 

Ring-fencing time for those who need it

While many customers prefer digital interactions, there remains a small but crucial group who lack the skills, means, or inclination to manage money online. Counterintuitively, extending digital self-service can actually help include these individuals.

How? By freeing up human resources.

Every time-consuming process that's automated or digitised liberates agent time. This time can be redirected to:

• Customer service hubs for complex inquiries
• Specialist teams supporting vulnerable customers
• Extended phone support hours for those who need it

As part of an omnichannel approach to communications, access to traditional channels can be maintained while ensuring your self-service option is so good that most customers prefer it.

How can digital self-service take-up be improved?

Several features help to make self-service the go-to channel for a wide range of customers. Firstly, it’s essential that the digital experience is personalised to each customer. This ensures the journey is relevant and only takes as much time and effort as necessary. 

Secondly, to prevent a high dropout rate, the journey needs to adapt to information submitted by the customer in real-time. For example, if there is an indication or declaration of vulnerability, the customer may be immediately segmented onto a dedicated vulnerability journey without interrupting the flow of the interaction. 

Online journeys must also be designed to the highest inclusivity standards. With an average adult reading age in the UK of just nine years and half of adults in the UK having the numeracy skills expected of a primary school child, making messaging and financial calculations understandable is essential. As a basic rule of thumb, design for the lowest skill set to maximise accessibility.

Finally, as we embrace digital solutions, it's crucial to address potential concerns:

1. Data Security: Implement robust encryption and follow data protection regulations rigorously.
2. Digital Literacy: Offer clear guides and tutorials for using digital tools.
3. Trust Building: Maintain transparency about automated processes and provide easy access to human support when needed.

Conclusion: protecting services for non-digital customers

The future of debt collection isn't about choosing between digital and traditional methods. It's about leveraging technology to provide excellent digital self-service that meets customers' highest expectations while dedicating human expertise to those who need specialist care.

By embracing this balanced approach, we can create a more efficient, effective, and inclusive debt collection process that serves all customers, regardless of their digital proficiency. A balanced, effective digital strategy will help you to extend contact centre capacity, including specialist care for customers in vulnerable circumstances or with complex needs.