Digital debt collection: advantages of the solution
The German company, which develops digital debt collection solutions, has entered a new market. It has opened a representative office in Warsaw. The startup’s goal is to change consumers’ and business customers’ perception of the debt recovery sector.
Although the collection process traditionally evokes negative associations, PAIR Finance’s solution changes this approach. The company’s product, based on artificial intelligence technologies, has already proven its effectiveness. It is currently used in nine European countries. Now, the solution is also available in the Central and Eastern European markets.
To develop the project in this region, the company brought on a new managing director, Michal Gebala. He will oversee the representative office’s activities in Poland.
How PAIR’s product works
The product relies on the Llama 3 generative artificial intelligence model. Specialists developed it using a controlled learning and reinforcement learning approach. Additionally, the fintech company is guided by the principles of behavioral economics and psychology. The system selects personalized solutions optimized for specific situations and clients. This significantly speeds up the collection process. Here’s how it works:
– the AI model can suggest sending a message to a specific counterparty;
– messages vary in tone — for example, they can focus on cooperation;
– the system determines the optimal day and time to send the message when contact with the client will be most effective;
– payment options include convenient and modern methods such as BLIK and Apple Pay.
PAIR Finance uses reinforcement learning to find out-of-court solutions for debt situations. The algorithms consider various behavioral typologies, allowing for a more accurate approach to each client. This increases the likelihood of a positive response and encourages voluntary debt repayment.
AI can analyze and classify 92% of incoming requests. These include requests for payment in installments, payment suspension, and responses to disputes and conflicts. Depending on the complexity of the request, the system either provides an automatic response or forwards the request to an employee for processing.
Real performance indicators
The solution was launched at the end of 2024. After just one month, it was independently processing over 30% of requests. After three months, this figure had grown to 50%. The following results were achieved during the platform’s operation:
– the speed of information processing increased fourfold;
– response times and wait times for consumers were significantly reduced;
– customer satisfaction increased by 10% due to shorter service times;
– in the first three months of operation, the debt recovery rate rose by approximately 3%.
The digital debt collection program presents itself as a financial expert that solves debt problems. A personalized approach reduces consumers’ negative perception of the process.
