The challenges and potential of data streaming

Proponents of data streaming recognise its enormous potential, particularly in collections. While legacy collections systems can impede the flow of data, moving away from these outdated systems opens the door to significant improvements. By investing in platforms that can consume streamed data, businesses can maximise the benefits for their customers, enhancing efficiency and performance in debt collection.

Everyday applications of data streaming‍

Behind the scenes in banking and retail, data streaming is already integral to our daily lives.

Banks use data streaming platforms to ingest and process real-time transaction data. This helps prevent fraud by generating alerts or notifications for further investigation.

At the supermarket, paying with your smartphone initiates a series of real-time processes: the payment is processed, the stock management system is updated, and loyalty points are added to your account. At the same moment, your bank balance is updated so that you know the exact state of your finances.

‍Implications for improving debt collection

One of the key tenets of the Consumer Duty is to ‘avoid causing foreseeable harm’ to consumers throughout their lifecycle. While no one consciously sets out to harm their customers, ‘sludge practices’ can inadvertently cause friction, delays, and blockers, preventing customers from resolving their situations quickly and easily. 

Collections processes driven by legacy batch processes, suffer from time lags in decision-making, which can have serious implications for consumers.

Helping vulnerable customers

Real-time data has an important role in helping vulnerable customers promptly. Consider a customer who is anxious to resolve their financial predicament quickly but their account is stuck in a work list. Their case is awaiting review for an appropriate solution to be identified because the data needs to be updated on an overnight batch run. 

The delay could cause them to take an action that isn’t in their best interests, such as taking out a payday loan, or it might cause stress that exacerbates a physical or mental health condition. This scenario would not happen with real-time data streaming, which allows both internal and external information to be consumed in real-time. 

The collections team would be empowered to make immediate decisions and offer the best solution for their circumstances, which can then be relayed to the customer instantly.

Proactive engagement with pre-arrears customers

The FCA advocates that firms proactively engage with consumers early and provide support to those experiencing financial stress. Identifying customers at risk of falling into arrears but who are currently up to date with their commitments is a challenge. 

This is where event-sourced, real-time data streaming excels. By constantly scanning for ‘events’ across internal systems and external data sources that inform the collections system in real-time, the system can identify potentially financially stressed customers without delay.

This dynamic approach helps to engage with ‘at-risk’ customers at the earliest opportunity and, through collections decisioning capability, offer personalised solutions. These solutions are presented to the customer via their preferred channel meeting the requirement to offer early support.

Summary: enhancing compliance with real-time collections

Every day, we experience the benefits of real-time data streaming. 

In collections, data streaming plays a crucial role in avoiding harm and ensuring help is delivered at the right time.

Collections teams can not only meet the requirements of the Consumer Duty but also impress customers with their responsiveness and accuracy. Meanwhile, vast quantities of repeated effort and mistimed communications can be eliminated. 

Talk to our team and ask to see a demo of real-time collections in action.

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