CREDIT MANAGEMENT
Besides this , some Digital lenders have been known to share personal data of loan defaulters , with third parties , putting them at risk of withdrawal of license in Kenya after lawmakers have come up with laws regarding the practice . The change adds to a number of measures taken by Kenyan lawmakers to protect citizens from rogue digital lenders who offer highpriced collateral-free loans . It grants the regulator , Central Bank of Kenya , power to oversee the operations of standalone digital lenders ( not affiliated with banks ) after a period of self-regulation . Digital lenders will , going forward , be required to obtain licenses to operate in Kenya , unlike previously , when they just had to register - which led to the proliferation of rogue apps . Nigeria has already taken action by withdrawing licenses of some digital lenders .
Just like any other type of collection , collection partners require adherence to the basic principle of Collection of Maintaining Goodwill . It is a known fact that even though the customer may be experiencing some difficulty in meeting payments now , it does not preclude them from becoming a good customer in the future . Therefore , it is important to maintain goodwill while pressing for collection . This requires not only tact , but knowledge of the customer and industry . One of the advantages claimed by specialized collection personnel is that they can develop these techniques to their fullest .
“ No gainsaying , the fact is choosing a right collections partner is must do for success of any digital lender and a sure way to escape the legal hurdles that seem to be major stumbling blocks in this very important financial system .”
On the other hand , the team concept presents the opportunity for credit and customer service personnel to better understand the relationship of the customer to the industry and overall marketing objectives of the company .
When deciding Collection Strategies , in some cases , the firm may offer its customer the payout plan . A repayment or a payout plan is devised to help the customer and it is usually for a reasonable amount . The payout plan may be established provided it is in writing and signed by the debtor and an institution representative . If the payout plan includes taking any guarantees or security , credit manager should make sure that the legal department reviews and gives formal consent before they are finalized .
Reviewing Periodically is something that Digital lender credit managers should remember that credit policy will change over time as the business needs change , the economic conditions in the industry change , and the economic conditions in the country change . It is worth noting that a technology-focused environment also risks creating an obsessive focus on risk management and hygiene factors with ‘ operators ’ confusing machine data with ‘ that must be how the customer thinks .
Hence , we lose the capability to focus on intangible benefits , the very thing consumers buy . Tangibility is only important as an enabler of intangible benefits .
No gainsaying , the fact is choosing a right collections partner is must do for success of any digital lender and a sure way to escape the legal hurdles that seem to be major stumbling blocks in this very important financial system . ■
WE UNDERSTAND PEOPLE DON ' T LIKE WAITING IN LINES . That ' s why we offer Event planners an easy and innovative self-service check-in solution for onsite badge printing
Events Solutions
CONTACT US TODAY : sales @ zippy . co . ke + 254 725 436962 | + 254 726 273769