Debt collection is changing as new tech and consent rules reshape the industry. Siddharth Agarwal of Mobicule said, "digital outreach, field operations, contact centres and notice management should all sit on one platform." FACE released guidelines in September last year to protect borrowers and ensure fair treatment during debt recovery.
"When the process is fully automated, much of that compliance work disappears. Collections officers can refocus their efforts on making recoveries, and compliance costs associated with business are much lower and processes run more smoothly," says Siddharth Agarwal, founder and managing director of Mobicule, a debt collection platform. He believes that "digital outreach, field operations, contact centres and notice management should all sit on one platform, with compliance embedded throughout."
Siddharth Agarwal Founder & MD, Mobicule
FACE -- the RBI-recognised self-regulatory organisation (SRO) for fintechs -- released its guidelines on debt recovery in September last year. It set safeguards on governance, agent conduct, borrower disclosure, data-protection and artificial intelligence for digital and field recoveries across shadow banks, lending service providers and collection-tech firms. Fintechs primarily engage in unsecured lending to customer segments often on the fringes, such as street vendors. Given this profile, these segments are invariably prone to shocks and delinquencies. "In this context, robust, respectful and responsible debt collection becomes all the more critical. Fintechs' focus on technology, data and customer experience is reimagining aspects of lending, including collection. Regulations clearly define no-go zones for collections protecting customers' rights to privacy and fair treatment", notes Sugandh Saxena, CEO of FACE.