Here's how companies are using AI to recover debts from customers without resorting to the customer's harassment that's against fairer practices.
Temmy Samuel
How to use AI to recover debts
Many fintech companies, like ClearGrid , are building AI-driven debt collection that helps banks, fintechs, and lenders recover more debt without resorting to customer harassment. Debt collection in emerging markets often feels outdated and can be costly — damaging borrower trust. As consumer lending surges and regulators push for fairer practices, legacy collection outfits are struggling to maintain pace. In this case, developing AI to help modernize debt collection, and recovery outstanding funds from customers without resorting to harassment came into the lending system. Additionally, many of the online loan apps and Buy now, pay later (BNPL) platforms you may know today are usually offering unsecured loans and this type of lending practices are skyrocketing almost everywhere. Unsecured loans pose significant risks for lenders because they lack collateral, meaning there is no asset to seize if the borrower defaults. This leads to higher default rates and potential financial losses. So, …
About the author
Temmy Samuel
He is a seasoned journalist with extensive experience in consumer tech, economy, finance, business, money and politics. Currently chasing a BSc degree in Accounting.
