AI Driven Collections Strategy for Unsecured Lending

The AI-Driven Collections Strategy for Unsecured Lending highlights how financial institutions can leverage Artificial Intelligence (AI) and Machine Learning (ML) to enhance their collection strategies. With unsecured lending portfolios like credit cards and personal loans facing increasing delinquency rates, adopting AI solutions helps reduce costs, improve recovery rates, and streamline operations.

Key Findings:

• 25-30% Increase in Loss Savings: AI enables organisations to recover more while reducing exposure to losses.
• 5-7% Increase in Productivity: Improved resource allocation leads to better performance and efficiency.
• 5-10% Reduction in Collection Costs: AI optimises the timing and method of outreach, lowering operational expenses.
• 9.2% Increase in U.S. Credit Card Debt: As unsecured lending debt grows, adopting smarter collection strategies is more critical than ever.

These findings demonstrate how AI-driven strategies provide actionable insights that enhance decision-making and boost overall financial performance.