Creating Win-Win Scenarios with Rezo’s AI-Enabled Settlement
May 11, 2023
Debt recovery can be a challenging process for both organizations and customers. Organizations often face difficulties collecting debts, while customers may struggle with the burden of high-interest rates and the need to repay their debts.
During debt collection, many accounts fall in the category of delinquency. These accounts need to be dealt with a structured plan to recover debts. Lenders might have to offer settlement plans to maximize recovery and reduce losses.
What is Debt Settlement?
Debt settlement is a debt relief strategy that allows individuals and creditors to negotiate with each other to reduce the amount of debt owed. It can be a viable option for those struggling with debt.
Why is Debt Settlement Required?
The debt settlement process is typically required when the debtor stops making payments on the debts and instead accumulates funds to pay off the settled amount. Once the debtor has accumulated sufficient funds, the debtor and creditor negotiate with each other to accept a reduced lump sum payment as satisfaction of the debt. This lump sum payment is typically less than the full amount of the debt owed.
How Rezo’s Collection Product can help in debt settlements?
Rezo helps to create win-win scenarios for both organisation and the customer in debt settlement processes. The collection product uses AI and Machine Learning algorithms and categorises the customers based on criteria like product, geography and DPD (days past due). The product then suggests different loan recovery strategies for different buckets.
What is the Win for Customers?
One of the major benefits of using AI in debt settlement is the ability to create personalised repayment plans for each customer. This personalised approach can help to improve customer satisfaction.
- Overwhelming Debt: If someone has accumulated a significant amount of debt and cannot make their minimum payments, debt settlement may be a viable option. Debt settlement with Rezo’s Collection Product can help reduce the amount owed and allow the debtor to become debt-free in less time.
- Collection Actions: When someone falls behind on their debt payments, their creditors may take collection actions such as phone calls, letters, or even legal action. Debt settlement can help stop these collection actions by negotiating a settlement with the creditor.
- High-Interest Rates: If someone has high-interest rates on their debts, it can be difficult to pay down the debt. Debt settlement can help reduce the overall debt amount, which can, in turn, reduce the amount of interest owed.
- Personalized Repayment Plans: The Product creates personalized repayment plans and suggests discounts on penalties or limited-time offers that are affordable for the customer. This way, customers can pay off their due loan amount, get rid of debt, and increase their credit score.
What is the Win for Debt Lending Organisations?
Rezo’s Collection Product is designed to help organizations in debt collection. It is a top-notch and modern approach to settling due debts.
- Improved Efficiency: Rezo’s Collection Product streamlines many of the tasks involved in the debt settlement process, making it faster and more efficient. AI can automate many repetitive tasks involved in debt collection, such as sending reminder emails and making phone calls to customers. This can reduce the time it takes to negotiate a settlement agreement with creditors, allowing debtors to become debt-free in a shorter amount of time.
- Reduce Human Errors: Rezo’s AI can also help to reduce the risk of human error in debt settlement processes. By automating many of the tasks involved in debt collection, there is less chance of errors being made. This can help to improve the accuracy of debt collection and reduce the likelihood of disputes between organizations and customers.
- Better chances of repayment: The collection Product analyze a customer’s financial history, credit score, and income to determine the best course of action for debt collection. When customers’ financial situation is considered, they are more likely to engage with the debt settlement process and agree to repayment plans.
- Increased Accuracy: AI can analyze large amounts of data and provide more accurate information about a debtor’s financial situation. This can help debt settlement companies to make more informed decisions and negotiate more effectively with creditors.
- Better Customer Service: Rezo’s AI can provide personalized support and guidance to debtors throughout the debt settlement process. This can improve customer satisfaction and help debtors feel more supported and informed.
In conclusion, debt settlement is a viable option for those who are struggling with debt, and Rezo’s AI-enabled Collection Product can help to create win-win scenarios for both debtors and creditors. With personalised repayment plans, debtors can become debt-free in a shorter time, and creditors can improve their chances of repayment while reducing the risk of human errors. Additionally, AI can streamline the debt settlement process, improve efficiency, and provide better customer service. Overall, Rezo’s Collection Product is a modern and effective approach to settling due debts that benefits organisations and customers.