CREDIT MANAGEMENT
Is Technology In Credit Processes A Solution In An Increasingly Digitized Environment ?
By Wasilwa Miriongi
The ongoing Covid-19 crisis demonstrates just how much Credit customers require support and how much that support is valued - no matter whether it is achieved via traditional Channels or newer channels like call centers or Twitter . Credit processes and functions need not be left behind in this changing landscape that requires quick solutions . With more and more text-based channels emerging in the digital landscape , a change in the approach seems only natural .
With the use of Technology to Improve Credit Processes , the world of credit management is in the process of changing . It is a slow but steady evolution that has been underway for several years . The introduction of technology into the credit field has been the catalyst that sparked the industry during the first part of the 21st century .
Technology in credit is getting really exciting . It is a known fact that technology allows smaller customers to automate processes in credit and collections , and it gives everyone a better experience .
Needless to say , customers need options , and a good customer experience means remaining competitive and implementing what works .
Adding new customers has many challenges , including manual data entry errors and back-and-forth correspondence . It previously took companies more than four days to onboard new customers . With technology , it should be reduced to a day or a half or even hours . Online credit applications help remove the need to input customer data multiple times .
Adding technology also improved productivity by as high as 100 % and reduced customer onboarding time by two-thirds .
Some credit processes to consider the use of new technology
Just to mention examples of these credit processes may include , Cash in terms of cost cuts through efficiencies , new resources , new processes , and outsourcing ,
It ' s important , as with anything new , to make sure the decisions you ' re making are the right ones . Some technology options aren ' t for everyone , so using the correct solution is the first step toward a faster , brighter future in the credit industry . customers should also not be left behind , especially in terms of their power , voice tools and experiences , and Connections for business in areas of new levels of internal information sharing .
In the Application Process
The credit application is a core credit process . It is obvious credit applications will be obsolete . Some predict it may be in the next five to ten years . They use technology to help with trade references , which we did not have time for previously , by adding tech solutions to the job .
Technology now has the ability to send notifications to the trade references listed by new customers , in turn , notifying the creditor when references have submitted their information about that potential customer .
The milestones in the application process could be : On-line Applications that are accessible via smartphones and handheld devices with minimal input required ( Company Number only ) and also by use of pre-population of data on application ; Automated Decision Making such as pre-determined qualification criteria and Use of Credit Risk Indicators to make decisions ; Social media profiling through the use of keywords and actions to determine payment expectations ; Quick decisions , especially in a world where instant gratification is an expectation ; Management portal to enable streamlined registrations and processes .
86 MAL41 / 21 ISSUE