The asset-based lending landscape shifts every year, and when new technologies like artificial intelligence emerge, it’s critical to understand and then integrate them to create the most efficient collection and repossession practices.
These new tools can enhance processes when applied appropriately, but to avoid errors and any risks associated with data security and regulatory compliance, it’s essential to test and verify the information AI presents to you. At Asset Compliant Solutions (ACS), we’ve been at the forefront as clients have experimented with and ultimately adopted new technologies like AI and are ourselves in the process of embedding these powerful new tools into our operation’s backend framework.
These advances will help us uncover patterns in the mountains of portfolio data we generate to drive improved collections and recovery programs that protect our clients’ portfolios and give them an advantage in our industry where and when they need it most.
1. Empowering Lenders with Predictive Analytics
Artificial Intelligence systems can be constructed to transform historical data such as sales details, payment history, customer interactions and many other variables into actionable insights. Expertly assembled and managed, these predictive tools are expected to give ACS and our clients a more complete, cohesive view of a portfolio’s condition, informing a more effective overall course of action to optimize portfolio performance.
By building robust models on a rich data set of past patterns, ACS has plans to develop an invaluable portfolio management tool, allowing us to take effective action on behalf of our clients far earlier than conventional methods.
The predictive analytics provided give clients benefits like:
- Proactive risk mitigation
- Portfolio forecast models
- Collection & recovery probabilities and ranking
- Early identification of at-risk accounts
- Recommended steps for struggling accounts
2. Identifying Asset Status and Location
In our decades of experience in the asset-based lending industry, we’ve built a reputation for exceptional skip tracing capabilities. When recovery is the most advantageous solution, finding and securing collateral can also be enhanced through new deep research functionality being integrated into AI platforms.
At the same time, however, it’s important to acknowledge the importance of human interactions. Often, it’s possible to avoid recovery entirely through ACS’s in-person door knock collection program, which incidentally can sometimes uncover critical intelligence about assets’ condition and locations.
This combination of data-intensive AI and human interaction is expected to minimize guesswork, improve collections and move more quickly and successfully when recovery is the best option.
Key features of our planned, AI-assisted asset assessment analysis include:
- Deeply researched, real-time asset tracking
- Reduced costs for field visits
- Reduced skip-tracing costs
- Faster recoveries
- Improved compliance documentation
3. Enhanced Communication and Engagement
Customer relationships are at the heart of the asset-based lending industry. Consistent, empathetic communication is key to maintaining those relationships and your brand’s reputation, especially when faced with a difficult collections and repossession process.
AI-driven systems are expected to assist us and our clients with collection and recovery tactics more perfectly suited to each client’s condition by responding to that client’s unique set of expectations.
With client outreach, ACS helps ensure borrowers are better informed about their status and more likely to respond and take appropriate action.
Improvements include:
- Statistically optimal techniques by asset type and/or customer characteristics
- Consistent tone and messaging
- Smart scheduling and follow-ups
- Increased borrower responsiveness
4. Automation of Manual Processes
At ACS, we’ve learned that specific processes standard to day-to-day operational needs can be delegated to AI-activated automations without any deterioration in quality. Tasks like data entry, payment reminders, scheduling time, location, and details can all be grouped and processed through backend applications. Though it’s important to test and closely evaluate during the early stages of development and periodically thereafter, process automation is one of AI’s holy grails and one we’re excited about exploring for ourselves and for our clients.
Some immediate benefits of manual process automation include:
- Improved accuracy
- Easier data access
- Enhanced speed
- Resource optimization
- Create a scalable system
Improved Process, Better Results
From risk management to market forecasting, AI has the potential to unlock a portfolio’s full potential with more accurate information on hand faster. If implemented with expertise and intention, this can be accomplished safely and with improved overall portfolio results; all without sacrificing the human element that underpins our industry.
At ACS, we believe in embracing new tools and systems and then integrating these systems into what we know works. We take seriously our responsibility to clients to develop AI-assisted processes to make our clients more secure and more successful.