Our data science team recently analyzed nearly a million accounts to determine the true impact of our online portal technology. While the study revealed a variety of factors impacted by engagement with digital payments, the data also illustrated how these payments can affect the life of the account – in this case, accounts that pay digitally resolve faster.
The Data Set
The data set examined in the study was a collection of approximately one million accounts referred to Professional Credit between January of 2019 and November of 2020. To ensure the sample was not impacted by sector, the accounts were taken from a variety of clients and represent a multitude of different debt types. Only accounts with at least one payment made were included in this sample.
The Method
Once an account is processed it becomes listed as active in the system. The analysis compares recovery percentages at the milestones in which we typically engage in collection activity: 30, 60, 90, 120, 180, and 365 days. The results illustrate along the timeline the percent of the total account balance which has been paid at each stage since the account’s initial listing.
The Results
When comparing the accounts with digital and non-digital payment activity the analysis showed the accounts with digital payments resolved a larger portion of their debt faster across the board.
At each interval, accounts that engage with digital payment methods outperform those which do not. This translates to a shorter account life and faster overall recovery.
While the benefits to digital engagement are often cited as lower overhead and FTE hours, the results of our analysis illustrate that online portal technology boosts revenue directly by simply providing consumers a convenient channel for account access and management.
Professional Credit strives to be at the cutting-edge of technology services for the benefit of our clients and the consumers they serve. Part of our strategy is to perform continuous analysis to identify areas for process improvement. If you would like to view the full findings of our 2020 Digital Payment study, download it here.