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: here we discover the effect on time to Paid in Full (PIF).
The Data Set
The data set examined in the study was a collection of approximately one million accounts referred to Professional Credit between January 2019 and November 2020. To ensure the sample was not impacted by sector, the accounts were taken from a variety of clients and represent a variety of different debt types.
The Method
Accounts were analyzed from the time of the first payment made until the balance was Paid in Full (PIF). Averages for all accounts were compared to determine the effect of digital payment activity versus payment activity made through other means on the length of time until the account could be fully closed.
The Results
The average time for non-digitally paying accounts to reach PIF status was 17 days. For those that engaged with digital payments, only 10 days. Digitally paying accounts reaching PIF status a full seven days faster illustrates a stunning—
42% improvement in time to PIF over non-digitally paying accounts.
While most view the benefits of digital engagement 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 for process improvement. If you would like to view the full findings of our 2020 Digital Payment study, download it here.