What is early vulnerability detection and how does it work?

Vulnerability and delinquency in collections goes hand in hand. Whether your customers are facing unforeseen financial challenges or an emotional life event, they can easily end up missing payments even after making them consistently in the past. 

Detecting these vulnerabilities early is not only key to avoiding payments being missed, but to support your customers around the challenges they’re facing. In this article, we explore the main steps involved in early vulnerability detection and why you need a configurable platform to help these customers avoid delinquency. 

Customer vulnerability and delinquency go hand in hand 

Vulnerability and delinquency are closely related when it comes to collections. Whether it’s financial or emotional vulnerability from unexpected life events, economic downturns, or systemic issues, these customers are far more likely to miss payments as a result of their situation. This shows the importance of being able to identify and support these customers before it’s too late. 

How detecting vulnerability can help you prevent delinquency 

Being able to detect whether your customer is going through a challenging situation can change everything when it comes to avoiding delinquency. With the right context around their vulnerability, you can tailor your support and strategy to accommodate their specific needs and avoid delinquency all together. These might include personalized communication strategies, adjusting payment plans to better suit the customer's current financial situation, or offering resources for financial counseling. 

Configurable platforms are the only solution to detect early vulnerability  

Configurable platforms are the key to detecting early vulnerabilities in your customers and actioning the right treatment path to avoid delinquency. They support a wide variety of integrations and tools that provide complete visibility of your customer’s situation for you and your team.   

• Omnichannel and customer-centric communications - Configurable platforms store your customer’s contact preferences and integrate with your preferred omnichannel system. This enhances engagement across channels and increases the chance of you being able to detect key trends of vulnerability in different customers. 
• Audio analytics - Advanced audio analytics can detect key indicators of vulnerability on calls between your team and customers. These analytics can then provide your team with insight into the best ways to support these customers to financial stability. 
  
• Operationalized algorithms - Configurable platforms can integrate algorithms and make decisions based on historical data. If customers show signs of historical accounts that soon become delinquent, it can automatically inform your team to take action before history repeats itself. 

Help your customers right when they need it with C&R Software 

Early vulnerability detection is crucial to help your customers avoid delinquency when they start showing signs of struggle. Not only does it help you scale your operations and maintain collections performance, but it shows your commitment to supporting people through financial hardship. 

At C&R Software, our industry leading Debt Manager supports the integrations to detect different types of vulnerabilities between customers and at scale. Seamless omnichannel communications, advanced AI tools and operationalized algorithms can provide you with the visibility and insight to help customers before they realize they need it. 

To find out more about Debt Manager and its capabilities in detecting customer vulnerability, contact a member of our team today.