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. During the analysis, we uncovered an unlikely correlation between engagement with digital payments and payment plan continuity.
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 no impacted by sector, the accounts were taken from a variety of clients and represent a multitude of different debt types. Only accounts which participated in establishing a payment plan, either by phone with an agent or via our online portal and set-up autopay were included in this portion of the study.
The Method
All accounts meeting the above criteria were analyzed for payment activity. Those in which a payment plan was “broken,” that is, a monthly payment was simply not made or denied due to insufficient funds or an error in payment information, were further assessed based on how they were established. Those established with an agent via the phone are categorized as “non-digital” while those set up with our self-service model online are “digital.”
The Results
The results show that of the broken payment plans, those established through digital means occurred only 11% of the time. In contrast to 18% for payment plans established through a non-digital channel. This is a surprising correlation—
Payment Plans established through the online portal are 39% less likely to be broken.
While most view the benefits of digital engagement as lower overhead and FTE hours, the results of our analysis illustrate what we have believed all along: empowering consumers to take control of their accounts results in better engagement and, as such, faster recovery. An online portal is an essential tool for revenue 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 consumers. Part of our strategy is to perform continuous analysis for process improvement. If you would like to view the full findings of our 2020 Digital Payment study, download it here.