LOAN RECOVERY: MEET THE BOT COLLECTOR

Algorithms are turning debt collection into a mass-scale business with a tinge of empathy

- Shadma Shaikh

As she prepared to call a debtor, Manoj, an adviser at Bengaluru-based debt collection startup DPDzero, saw a message flash across his screen. 'Borrower sentiment: distressed'. A second later, a more specific prompt appeared relaying the borrower's previous communication: 'Medical issue reported. Proceed carefully'.

The borrower hadn't answered the adviser's call that morning. But he had responded to an automated interactive voice response (IVR), leaving a short message that said his daughter was in the hospital.

So, when Manoj called, he did not open with the overdue amount, and instead said, “Sir, how is your daughter doing?”

He noticed an immediate shift in the tone of the conversation. By the end of the call, the borrower committed to repaying his dues in the coming weeks.

In another recovery call that this writer listened to, an artificial intelligence (AI) agent with a female voice and warm demeanour opens the call in Hindi. “Sir, what seems to be the issue? Has there been a change in income?” it asks the borrower, who had missed an equated monthly instalment (EMI) payment. After a short silence, the borrower admits he has lost his job. As the call progresses, it is evident that the borrower, who began the call with hesitation, has now eased into the conversation after sensing that the recovery agent is trying to help him.

“Your credit score will be impacted. It may cause challenges if you need a personal loan in the future. You can make a partial payment, minimum 30%,” the AI agent tells him. The tone changes from reassurance while discussing the job loss to firmness while discussing repayment. By the end of the call, the borrower agrees to make a partial payment.