ROAR Insights+ : Premium Content

INSIGHTS+ ¦ What is Loss Aversion theory – for Collections

Loss aversion theory, rooted in behavioural economics, posits that individuals prefer avoiding losses rather than acquiring equivalent gains. This principle has significant implications for the collections function within a creditor's operations. Understanding and leveraging loss aversion can enhance the effectiveness of collection strategies, leading to improved recovery rates and customer relationships. Why Loss Aversion Theory? Loss aversion theory is vital in collections due to its psychological impact on customer behaviour. People are typically twice as motivated to avoid losses as… Read more

INSIGHTS+ ¦ What is Nudge theory and how does this relate to Collections

Nudge theory, a concept derived from behavioural economics, posits that subtle changes in the way choices are presented to people can significantly influence their decision-making. Within the collections function for a creditor, applying nudge theory can lead to improved customer interactions, higher repayment rates, and a reduction in delinquent accounts. This article explores the importance of nudge theory in collections, key considerations, the top ten elements needed for its implementation, and the potential benefits for businesses. Why Nudge Theory Nudge… Read more

INSIGHTS+ ¦ What are 10 behavioural theories that impact the debt collections process

10 Useful Behavioural Framework Models for Debt Collections Nudge Theory: Nudge theory involves subtly guiding individuals towards desired behaviours without restricting their choices. In collections, nudges can include reminders before payment deadlines or suggesting convenient payment options.Loss Aversion: This principle says that people are more motivated to avoid losses than to acquire gains. Highlighting potential negative consequences of non-payment can incentivise debtors to pay.Social Norms Theory: People are influenced by the behaviours of others around them. Informing debtors that most… Read more

INSIGHTS+ ¦ How to Use Data-Driven Personalisation in Collections: Enhancing customer interactions through personalised data insights.

Introduction In an era where personalisation is critical to customer engagement, the collections function for creditors must adapt to incorporate data-driven personalisation techniques. This strategy not only enhances customer interactions but also optimises recovery processes and improves overall customer satisfaction. This article explores the top 10 key elements required to effectively implement data-driven personalisation within a collections function, detailing why it is important, key considerations, and the expected benefits. Why Data-Driven Personalisation in Collections? Data-driven personalisation leverages customer data to… Read more

Job Loss Dashboard

Job Loss tracking dashboard, based on analysis of daily news feed, and items that mention job losses. Analysis of trends, both in terms of total job losses and number of unique company names mentionedCompanies highlighted, but without specific job loss figures are recorded in a separate column (this is often a precursor to figures being announced)Dashboard allows drill-down capability, by month and by company, including reference to original source text NOTE: Some duplicates may appear due to reporting of variation… Read more

INSIGHTS+ ¦ How to Leverage Open Banking Data: Utilising open banking for improved decision-making and customer engagement.

Introduction In today's financial landscape, leveraging open banking data within a creditor's collections function is becoming increasingly pivotal. Open banking, which enables third-party access to banking data through application programming interfaces (APIs), offers a wealth of information that can enhance decision-making and customer engagement. By integrating open banking data, creditors can refine their collections strategies, improve customer interactions, and ultimately, optimise their financial outcomes. This article explores the key elements necessary for effectively utilising open banking data in a collections… Read more