Beyond I&E: Managing Affordability in a Crisis | Flexys


Beyond I&E: Managing Affordability in a Crisis

Managing Affordability: Introduction

The Standard Financial Statement has been a valuable addition to ascertaining customer affordability in the debt collection process since it launched in 2017. The SFS brings greater consistency to financial assessments and lays the foundations for fair and appropriate outcomes for customers based on their income and expenditure at a particular point in time.

However, as Collections teams know only too well, the SFS is just the start of the affordability assessment process.

During the assessment procedure, organisations aim to achieve:

  • Quick and clear outcomes for customers
  • Proven consistency and fairness
  • Efficient use of agents’ and customers’ time

These goals exist within an economic climate where the volume of customers who need help is increasing, financial vulnerability is rising, and where customer circumstances can change and change again.

This leads to a number of pressures:

  • Managing inbound engagement
  • Assessing and re-assessing the customer’s ability to pay
  • Maintaining the paying habit
  • Making it easy for the customer
  • Ensuring actions are based on accurate information

SFS completed; what next?

The SFS can be automated, but what does automation mean, and what impact can it have on operational capacity, customer service and baseline costs?

In many cases, ‘automation’ of the SFS is a stand-alone information capture form filled in by customers. This represents a valuable time saving but falls considerably short of what can be delivered. If an agent is required to manually complete the procedure, it’s less than half the job done.

Smart Affordability Decisioning, organised to each organisation’s parameters, strategies and policies, can generate consistently fair and appropriate outcomes without manual agent activity. All available data sources can be instantaneously evaluated, and all the known values can be used to produce the most appropriate outcome in accordance with pre-configured rules.

Truly personalised channel-agnostic journeys

The outcome is conveyed to the customer via their preferred communication channel. This may be the offer of a particular arrangement type or a period of forbearance. Customers may be identified as eligible for sector-specific help such as social tariffs (helping to increase take-up), or, where the customer has no foreseeable affordability, they can be directed to a debt advice body or income maximisation service for specialist help.

In the latter case, the customer’s income and expenditure can be automatically rechecked over an appropriate time frame, triggering the SFS to be unobtrusively sent out again.

In a customer self-service journey, the same decisioning is deployed as in an agent-led journey ensuring consistency across all channels. The same decision engine will factor the available outcomes into the best next steps and present them to the customer in real-time. This means that each digital journey is individualised and relevant, adapting to new information and taking no more time or effort than is necessary to achieve the most appropriate outcome, every time.

In every case, customer circumstances can be checked automatically over a designated period to capture any improvement in the customer’s ability to pay or any deterioration in the customer’s circumstances that needs to be addressed.

The real benefits: proven consistency and fairness

The time saving offered by advanced automation is vast but the true benefit is timely, relevant and appropriate engagement every time, for every customer.

With regulators focusing on demonstrable consistency, organisations can be certain that their own internal policies are being administered fairly and can refer to an immutable audit trail to prove that each customer has received unbiased and consistent treatment across every channel. To deliver exemplary service for customers at a time when circumstances are chaotic or unpredictable and at a time when new staff are extremely hard to come by, collections teams will be seeking to take full advantage of the operational advantages available through intelligent automation.

About the author: Martin Aldridge, Solutions Consultant

Martin has extensive experience in solution consulting for collections and recoveries organisations, having spent many years working with Banks, Financial Services, Telcos and Utilities across 25 countries. His key focus, apart from advocating clarity of requirements, is driving maximum value for the organisation whilst retaining and enhancing the customer experience at the same time.

To discuss your organisation’s challenges and find out more about the options for improvement, please talk to our team:

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