Looking ahead: 2024 predictions for the Credit Management and Collections industry
The future is never certain, but trends and patterns in today’s industry give us good insight into possible direction. So what are the predictions for the credit management and collections industry for 2024?
One of the most significant trends in the credit management and collections industry is the increased use of technology. This trend will likely continue in 2024, with more organisations relying on digital tools and automation to manage their credit operations. Artificial intelligence and machine learning advances allow businesses to automate credit tasks, such as credit decision-making and collections.
Emphasis on Customer Experience
Modern credit and collections functions recognise that a positive customer experience is essential to build long-term relationships and drive revenue growth. While AI-supported mobile apps and chatbots will continue to head into this space, businesses will turn to human interaction to ensure more personalised communications enhance the customer experience.
Regulatory scrutiny of the credit management and collections industry will likely increase in 2024, particularly in data privacy and consumer protection areas. As governments take a closer look at the industry, businesses must demonstrate compliance with new regulations. Companies that stay ahead of regulatory changes will be better positioned to succeed in the coming year.
Focus on Sustainability
More businesses are expected to reduce their environmental footprint and promote social responsibility. This could include initiatives such as paperless billing, energy-efficient offices, digital connection and community outreach programs in the credit and collections arena.
As more people shop online, businesses must adapt their processes to support this. For credit functions and organisations, this means managing credit risk online using new data sources and algorithms to assess creditworthiness and prevent fraud.
In 2024, businesses must be prepared to manage the increased risk of insolvency among their customers. In addition to robust post-insolvent skills, credit managers need to develop earlier awareness of potential insolvency by considering the strength of their credit policies, the frequency of their customer monitoring and the effectiveness of analytics to assess credit risk.
It may only be possible to predict some changes for 2024. But by keeping a close eye on trends and remaining agile and responsive to them, businesses in the credit and collections industry and credit management departments within organisations can position themselves for success in 2024 and beyond.