Field operation is the most essential component of any on-site collection endeavor. Field operations involve a debt collection agent physically visiting a defaulting borrower in an attempt to persuade the borrower to clear their overdue payments. 

There are many hats that a field debt collection agent has to wear. They must be skilled in persuasion and negotiation. They must understand the nitty gritty of the debt and the terms of the agreement. They must coordinate with other members of their team.

Since it’s a difficult job that has high stakes, it’s best to assist field agents with software tools that can make their job easier and make them more effective. 

We recommend lenders consider these ways to enhance the efficiency of their field operations. 

Mobile Applications and Field Management Software

Every field debt collection agent swears by at least a few mobile applications that help them with their work. There are now specialized field management apps that have been specially designed to help field operatives and their supervisors. 

Just some of the features that we can expect from these apps include real-time information about the loan terms and outstanding amount, relevant debtor information that the field operative needs to be familiar with, the payment history of the borrower, as well as collection notes which the agent and their supervisors can fill according to the needs of each case.  

Further, other apps can also be used to help with project management and to help with route optimization since time is of the essence and the agent has to physically travel to the location of the borrower. 

Automated Communication Tools 

In conjunction with field visits, the field agent should also have access to an automated communications tool. The field agent can deploy this tool in a number of ways. 

They can inform the borrower that they will be visiting them, they can use it to inform the borrower about the overdue payments and their details, they can let borrowers know how much added interest is accruing due to non-payment, and otherwise coordinate with the borrower. 

It’s important for the communications tools to be able to work on various channels since different borrowers use different channels. For example, some borrowers may be active on email while others may primarily use WhatsApp. 

Further, an added feature of these tools could be a voice broadcast system so that the agent can record a voice message and send it to the borrower. 

GPS and Geolocation Services 

It’s important for a field agent to have GPS and geolocation services at their disposal. 

Each field agent will have to make visits to many borrowers. In such circumstances, it can be difficult for the agent to immediately know where each borrower lives and the shortest route to them from where they currently are. 

Hence, its important for lenders to ensure that their agents know how to use a GPS or geolocation service. Such apps can provide a convenient way for field agents to make their way to each borrower without getting lost or without spending undue time trying to find their way. 

Electronic Payment Solutions 

Since the primary job of the field agent is to collect payments, it is important for them to be able to collect payments from borrowers on the spot when they make a visit. In case the borrower agrees to make a payment in front of the agent, the agent can then finalize the transaction in person by using an electronic payment solution. 

We now have electronic mobile card readers that agents can conveniently carry on their person. These devices can be used to collect any payment through any debit card or any credit card. Further, since many borrowers may prefer to use their mobile wallets or UPI apps, the field agent must be prepared to use these apps to collect payments as well.

Data Analytics and Predictive Modeling  

So far, our tips and tools have been focused on the field operative. There are tools that debt collection agencies can use that can elevate the effectiveness of their field loan collection operations. 

Agencies can leverage data analytics to decide which borrower poses how much risk to their collection efforts. They can analyze the payment history of each borrower to come up with a comprehensive risk assessment that can be forwarded to the lender. 

Such tools can also help agencies decide what the best strategy for debt collection may be based on the profile of the borrower. The strategy that would be used for a wilful defaulter will need to be different than the strategy used for a borrower who genuinely has a difficult financial situation and is doing their best. 

How Can Legodesk Help?  

It would be amiss of us if we didn’t mention our own effective software tool. 

Legodesk offers an intuitive software platform that has been built with the needs of debt collectors in mind. Our debt collection app has a range of useful features such as contact management, case management, legal notice automation, and more which can be indispensable for a debt collection agency or a lender. 

We are trusted by institutional lenders such as banks, NBFCs, as well as enterprises that keep credit with their customers. 

Wrapping Up 

Overall, face-to-face debt recovery can be a major challenge but with a significant potential return on investment. 

Even experienced field collection agents can easily falter when faced with the pressures of the field. They need to have excellent emotional regulation and be trained in the best negotiation and persuasion tactics. That’s why it’s in the lender’s best interest to ensure that all field operatives are equipped with the best tools that can make their jobs easier. 

While we have spoken about the software tools that are already present, we can spare a few words for tools that may be available soon in a few years. Augmented and virtual reality capabilities are being developed which can be excellent assistants to field operatives. Virtual reality can help agents practice their skills in real-world situations. 

Some of the types of software tools that we have mentioned above can be availed for free or have nominal costs. This can help lenders decide which tools to use and how to deploy them.