In a fast-paced and unpredictable economic landscape, we have seen unprecedented challenges for both businesses and their customers. In the wake of the Covid 19 pandemic, various geopolitical emergencies and a subsequent cost of living crisis, it has never been more important for lenders to ensure they have the right strategy in place to support their most vulnerable customers, and deliver positive outcomes all parties.

Momenta Group, with over 30 years of expertise in delivering tailored, resourcing solutions, stands at the forefront of reshaping Collections strategies. In this blog, we explore how Momenta’s experience can empower your team.

The Evolution of Collections: Beyond Traditional Challenges

Collections departments have always been tasked with navigating regulatory complexities. With growing numbers of consumers falling into financial difficulties, and this expected to continue rising throughout 2024, many of our clients’ teams are feeling the operational and emotional strain of increasing workloads in such a demanding and highly sensitive environment.

Recent research commissioned by the Centre for Financial Capability sheds more light on the current situation. According to the study, 22% of borrowers have missed one or more repayments in the six months leading up to December 2023. Of those, over one-quarter experienced credit score hits or were contacted by debt Collections agencies, underscoring the urgency for proactive solutions.

The Importance of the Right Talent:

Critical to tackling Collections challenges is having the right talent in place. Here’s why:

1. Expertise in Regulatory Compliance: Collections professionals must possess the expertise to navigate the evolving landscape, ensuring compliance not only with traditional regulators like FCA but also with potential future regulations governing Collections services such as BNPL.
2. Empathy and Communication Skills: With the younger demographic often being the most affected by late repayment fees, Collections Agents need heightened empathy and communication skills. Financial difficulties are often sensitive, and customers value understanding and compassion. The right talent can effectively communicate with customers, exploring options and solutions that foster a positive customer experience.
3. Negotiation and Problem-Solving Abilities: challenges often require negotiation and creative problem-solving. Skilled Collections professionals can collaborate with customers to develop flexible repayment plans, helping to alleviate financial burdens and mitigate the risk for all parties.
4. Customer Retention: In recovering debts, the right talent focuses on customer outcomes, experience and retention. Identifying opportunities to retain valued customers by offering suitable solutions preserves long-term relationships and reduces customer turnover.
5. Ongoing Engagement: As regulators have emphasised, continuous and clear communication is essential. Collections agents with the right skillsets can maintain open lines of communication, keeping customers informed of their options and engaged throughout periods of assistance, fostering transparency and trust.

Momenta’s Tailored Resourcing Solutions:

Momenta Group recognizes the unique challenges posed by Collections services and offers tailored resourcing solutions to address them:

• Specialised Workforce: In the face of Collections challenges, expanding your customer-facing workforce becomes crucial. Momenta’s can provide a specialist, flexible and cost-effective workforce, which can adapt quickly to changing priorities.
• Mitigating Risks: Our experts are equipped to mitigate risks arising from Collections challenges, ensuring your organisation is well-prepared for potential regulatory changes and is customer-centric in its approach.

Empowering Collections

Momenta Group is not just a solution for traditional Collections challenges; we are your strategic partner in navigating the evolving landscape of Collections. By addressing the unique challenges, our tailored resourcing solutions empower your team to stay compliant, foster positive customer experiences, and navigate the complexities of Collections. Schedule a consultation today to explore how Momenta can reshape your Collections strategies for 2024 and beyond.

Works cited:

• De Best , R. (2024). Buy now, pay later size in UK 2028. [online] Statista. Available at: https://www.statista.com/statistics/1372750/bnpl-transaction-value-in-uk/.

• The Money Charity. (2019). Statistics Archive – The Money Charity. [online] Available at: https://themoneycharity.org.uk/money-statistics/.