With the move of much of our lives online, digital interaction has now become almost everyday. Development and configuration does take time however and this week I seem to have mainly spent setting up some digital infrastructure behind the scenes here.

What particularly struck me however, and spending time with the detail, is the level of information and tracking now available.

Much of this is in contrast to the typical data used common customer journeys, especially in the debt collection and recoveries space. Yes, it is being used by headline fintech giants, but for the average accounts receivable process, not so much.

But, this is where the power lies and using the data for good can really help in creating more positive customer outcomes.

Expanded data

Messages sent, opened, timing, geolocation, actions, on-site behavior, journey flow, outcomes are all now routinely collected. Matching these with existing account attributes is incredibly powerful – there are benefits in flagging vulnerable customers earlier or helping folks with problem debt before it gets too large. It is the future we are standing on the precipice of.

Of course, it is not to say this is not being looked at already. Some are already thinking in these terms. However as much as there are complexities involved, the real challenge seems to be as much changing our perspective, thinking more like a fintech and building this into our processes.

Creating change

On a related note, change is a foot. Change management that is.

Regarding the pandemic, much of the reaction we have seen so far has been society coming to terms with and progressing down the change curve.

Blame, Confusion, Acceptance, Problem Solving, Moving on

Different of course by the individual, but in general we dont seem to be moving much, largely stuck and not making it much past confusion.

It as pointed out this week, we need to start to accept and move on. With new virus strains, we may be in this situation for a while. Staying still will mean we just continue to live, Blame and Confusion, on repeat which does not feel particularly healthy.

Maybe then this is the time to relook and reinvent all our processes and gain a fresh perspective. Not one based on what has gone before, but what will need to be, for the current reality. We may be here for some time.

Other stories of note

• Soaring debt levels reported by businesses in the UK. All of this debt will need to be collected. In the background, we also have the prospect of zombie firms, some of which are being propped up by government support schemes which were also extended this week.
• The is a growing trend of new FCA licensing and portfolio consolidation in the industry, a couple more this week alone… this is a trend to watch and one that may continue as the economic impacts play out.
• On fintech, an interesting story on Barclays rolling out digital receipts. This sounds similar to extended data that was available in closed-loop networks such as Amex in years of old, however, it really underlines the importance there is today in capturing data. It is also interesting how there is now perceived to be a consumer market for this type of information now. We have all become very much more data-savvy it seems.
• Lending wise, the latest data is still showing softness in motor finance and second mortgage markets, although clearly there is an expectation of pent up demand in the background. Interestingly average balances for accounts in arrears also seems to be increasing. This could of course be due to a change in the mix; those in arrears in a worse situation than before, whereas others, better off, with less casual arrears, this would fit the pattern seen elsewhere.
• There is also definitely a sense of lockdown fatigue setting in. This seemed to be supported with data showing an increase in shop footfall. There were also some reports on pressure for employees in places to be back in the office too.
• Lastly, on UK economic data. ONS data this week showed a record shrinking of GDP by 9.9% last year. There was also a good comment by Duncan Weldon from the Economist “But just as extraordinary as the scale in the fall of GDP has been the extent of government support: £60bn on furlough, £25bn in tax cuts and grants to firms, £2bn of tax deferrals, over £85bn of government-backed cheap loans to firms. Plus the automatic stabilisers”… we still have some challenges ahead it seems.

So enough doom and gloom for now, it is cold out, but still sunny, so not so bad really…. have a good weekend everyone.

With lockdown, many of us have transformed how we work, shop and use services from companies. As a result, and also through necessity, there has been widescale digital implementation and adoption. New habits have been created for employees and customers alike.

One good example of this is the workplace. For those that can work at home, what was previously office based interaction, has now turned into digital interaction, including lots of video calls.

The digital dividend

Although the technology has been around for a while, we seem to have now discovered the great benefits to this way of working.

• Gone is the commute, time back in the diary.
• There is greater flexibility over your schedule, helpful with competing demand
• We now have the ability to quickly check in with customers/employees, wherever they are in the world.

In some ways this has actually been an enabler, helping to build stronger relationships and find new ones.

However, despite this apparent panacea, all is not perfect in paradise. Increasingly we are starting to hear about some of the drawbacks now too.

• Shorter meetings: Meetings have gone from typically an hour before to 30minutes booked. This was fine, there was a lot of chit chat anyway. However, now there is a new trend, 15minutes only, straight to the point. At some point, it is feeling as though the human niceties are getting squeezed out, just so we can squeeze more in the day.
• Back to back is the norm. No longer are we running between meeting rooms, let alone offices, which at least did provide a moderation of exercise. Now with mearly a click we are onto the next topic, with hardly time to get a coffee, let alone get ready and prepare.
• Fragmentation of the day. With various calls, all day, the days are becoming increasingly fragmented. It can be hard to get clear slots of time in the day to actually get work done. Quite a few folks have mentioned longer hours and working late more often now. This is the only time when the diary is free and without distraction.
• Asynchronous work patterns. Digital has been great, with asynchronous messaging allowing us to get stuff done on the side, multitasking. However, this is also transferring across to the workplace too. A conversation at someone’s desk used to take 20minutes, job done, complete. Now it may take a day, broken into chunks of conversation, all to get the same information. Whilst this approach has been great for customers interacting with companies. For companies interacting with clients, and wanting to get product out, at best it is leading to inefficiency, at worst process delays.

Peak Digital?

Some with a rush to online, remote working, are we now seeing a pause for thought. Maybe we are not longing for the past, but starting to value more a few features of the office that are now gone.

So are we reaching a peak in digital? Will there even be a peak? Will we go back to the way things were?

Likely there is more to run. There have afterall been some real benefits from digital working. Most employees don’t want to go fully back to the office just yet either. There are however certainly some early signs of a change in mood.

Likely we will reach a new, different, equilibrium in the coming months, trying to recapture some of the human interaction we have lost… it will be interesting to see how it all evolves.

Other stories this week

• Interesting comments from the FCA this week on regulation for the Buy Now Pay Later sector, resulting in a flurry of headlines and action. This was a result of the Woolard review into the unsecured credit market, which also makes an interesting read too. Maybe more on this another time.
• Elsewhere there was further concern voiced on the end of stamp duty relief and the impact on the housing market. Still now firm change on this yet, although there is plenty of pressure for an extension. It currently end on 31st March 2021.
• Lastly, new data showing the softening of credit card and motor finance markets too.

Changes are afoot, and similar to working patterns, we are starting to see impacts crystallize and normalize to a new equilibrium it feels

That is all this week, have a good weekend everyone.