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  • Writer's pictureStayAhead Editorial Team

Transforming Collections: The Role of AI & RPA


The financial industry is going through big changes and thanks to new technological advancements in Artificial Intelligence (AI) and enhanced processing of various administrative tasks using Robotic Process Automation (RPA). These technologies are making work faster, improving customer experiences, and creating new ways for banks, investment firms, healthcare organizations, , insurance companies, every creditor and outsourcing partners including credit and collection agencies to streamline the operations with the goal of increasing revenue.


AI in Collections

AI does tasks that usually need human intelligence, like recognizing patterns, making decisions, and solving problems. In finance, AI is used in several important ways:


Fraud Detection: AI can look at millions of transactional data to find suspicious activities and possible fraud or even indicative signs more accurately than humans. These could be highly helpful for creditors in mitigating the risk at early stages of engagement.


Credit Risk Assessment: Through various data analysis models one can predict if a debtor might not pay back a loan by looking at factors like income, job history, credit scores, payment history, payment patterns, demographics, other financial commitments, purchasing patterns, etc . In this way, calculating value at risk (VaR) computation can be useful for first party as well as third party collection agencies to identify accounts that are more likely to pay compared to those who don’t and shorten the AR period.


Skip Tracing: With various metadata available through reliable sources, AI tools can process them dynamically and help collectors locate the consumer within minutes and establish communication for further engagement. A step further, can assist through suggestions on preferred channel to communicate for a positive outcome.


Customer Service: AI-powered chat bots and virtual assistants provide 24/7 support, answering common questions and solving problems for customers.


RPA in Collections

RPA uses software robots to automate many of the repetitive administrative tasks in any of the operational areas – EDI, accounting, client success, compliance, legal and others that people usually do. In the area of accounting & finance, RPA is making a big impact by:


Streamlining Back-Office Work: Robots handle tasks like data entry – loading of accounts, building lists for campaigns, reviewing and processing documents, etc. Through pre-built workflows and well-defined business rules, tasks that involve data processing, normalization, manipulations and ingestion can be performed through RPA bots.


Improving Compliance: One of the areas of compliance is resolving disputes reported through eOscar in a timely manner. RPA, bots can be programmed to go through hundreds of disputes and carry out preliminary data verification and allowing the compliance teams to review the pre-screened disputes and resolve.


Optimizing Billing and Invoicing: Programming robots to extract data from thousands of invoices and update the system of recording and processing payments. Moreover, cross checking these for duplicates can save one from erroneous and incorrect processing of payments. While processing charge offs bot can be used to do any reversals and adjustments, saving people from doing mundane tasks and streamline revenue cycle.


The Power of AI and RPA Together

AI and RPA are changing the landscape of collection operations to handle volume and increase operational efficiency. AI analyzes data, makes decisions, and learns from experiences, while RPA carries out the actions and automation's. This team effort leads to greater efficiency, accuracy, and cost savings and enables new products, services, and business models.


Looking Ahead

As AI and RPA continue to improve, we can expect even more changes in the accounts receivable industry. These technologies will make operations smoother and improve the experience of consumers in handling their financial commitments including resolving debt, , better client engagement and helping financial institutions stay competitive and innovative.

By using AI and RPA, financial companies are not only making their current processes better but also preparing for future advancements. Embracing these technologies will be key to staying ahead in a fast-changing world.

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