Over the last few decades, the collections and recoveries industry has gone through a quiet revolution.
We’ve moved from clipboards and call centres to AI-driven strategies, omnichannel engagement, and regulated best practices. The stereotype of the old-school, hard-nosed debt collector is quickly becoming a relic of the past. And rightly so.
But in the rush to modernise, automate, and scale, we’ve started to lose something fundamental: the human connection.
We’ve got the tools. We’ve got the data. What we don’t always have is the right mindset, especially when it comes to dealing with customers when they are emotionally and financially in difficulty.
In this blog, I want to look at the strides we’ve made as an industry, where we could improve, and how we ensure we don’t forget about the human element.
From evolution to oversight: Where we’ve gone wrong
Let’s be clear, progress has been made.
The rise of digital contact strategies, open banking integrations, and personalised messaging has helped companies engage customers faster and more efficiently than ever before. Regulation has stepped in to protect vulnerable consumers, setting standards for fair treatment and transparency.
But here’s the irony: in trying to become customer-centric, many organisations have drifted further from the customer. We celebrate increased engagement rates but forget to ask, ‘Is that engagement meaningful?’. We design slick digital journeys, yet fail to answer the most basic question, ‘Did this make life easier for the person on the other end?’.
Customers don’t just want contact, they want to be heard
People in debt are often in a deeply vulnerable state. They’re not just dealing with overdue payments, they’re facing stress, uncertainty, sometimes even shame. A missed bill might be the result of a job loss, illness, or a personal crisis.
What they need isn't just another payment reminder or chatbot interaction. They need a conversation that listens without judgment, acknowledges any potential concerns, offers support, and turns a transactional moment into a trust-building experience.
It starts with people
To deliver that kind of support, we need more than process improvements and tech upgrades. We need people who care. That means:
- Investing in training that goes beyond systems and scripts.
- Hiring people with real-life experience, who know how to speak with empathy.
- Giving agents the time and tools to have productive, solution-focused conversations.
Collections shouldn’t feel like enforcement. It should feel like partnership.
Get the basics right then build from there
Digital self-service tools are incredibly valuable. But if we build journeys without empathy, we’re just automating frustration.
The goal shouldn’t be just to collect debts. The goal should be to support people through difficult times, and in doing so, protect long-term customer relationships, brand reputation, and business outcomes.
Let’s stop looking at collections as the final touchpoint and start treating it like the moment that defines loyalty.
Final thought
The future of collections isn’t just more tech, more channels, or more data. It’s more understanding.
If we can combine modern tools with human empathy, we won’t just recover more. We’ll redefine what recovery means for the customer and for the business.
We can help
Arum can help you make the changes to your technology and processes, as well as upskill your teams, to make you stand out from the crowd and support your customers through their most challenging times.
Take a look at our helpful resources below or contact us directly to discuss your needs.
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About the author
Walter Mather
Lead Consultant
Walter is a senior financial management, operations, and strategy professional with over 30 years of experience in the banking and collections industries. He has held senior roles across the full credit lifecycle, excelling in operational, strategic, and technical aspects. With expertise in change management, strategy, and analytics, he has led large teams, managed multi-million value debt portfolios, and delivered major transformational programs. Walter has also worked in the insolvency sector, implementing new operating models and outsourcing functions across multiple countries.