At Algonew we firmly believe that the most critical stage of the credit cycle does not begin with default—it starts much earlier. Pre-collection represents a strategic window to anticipate customer behaviour, build healthier relationships, and, most importantly, significantly reduce early delinquency.
Leading analysts and consultancies, such as Gartner and Oliver Wyman, increasingly recognize this early stage as one of the most profitable areas for applying artificial intelligence (AI) and automation. According to Gartner, only 26% of organisations currently use prescriptive analytics, but among those that do, 79% report a direct competitive advantage. This statistic highlights the importance of adopting predictive analytics and automation technologies to transform traditional credit management into a more intelligent, forward-looking process.
At Algonew, we provide a comprehensive AI-driven pre-collection approach. Our solutions enable automated preventive communications, real-time risk-based portfolio segmentation, and multi-channel outreach via WhatsApp, SMS, email, and VoiceBots. This multi-channel strategy ensures not only efficiency and personalisation but also timely, relevant, and respectful customer engagement.
Our decision-making system automatically selects the optimal action, timing, channel, message, and tone based on variables such as debt age, payment history, prior digital interactions, and the customer’s communication sensitivity. All orchestrated by an auditable decision engine, eliminating the need for human intervention.
The results speak for themselves: Clients using our intelligent decision engines during pre-collection have reduced early-stage delinquency by up to 40%. This not only improves financial KPIs but also reduces brand friction by delivering a more human and personalised experience, even in sensitive recovery scenarios.
Oliver Wyman agrees that prevention is key. Their latest reports highlight that financial institutions shifting to digital, preventive recovery models achieve greater scalability, lower operational costs, and increased resilience against adverse macroeconomic events.
Their analysis also reveals that institutions with proactive digital segmentation and outreach achieve conversion rates up to 60% higher than those relying on reactive, manual models. This difference impacts not just recovery rates, but also customer experience and brand perception.
At Algonew, we support this transition with a technology suite that enables recovery and risk teams to operate with predefined business logic, yet dynamic AI-driven execution. The system learns from every interaction, refines decision models, and continuously optimises outreach campaigns, maximising effectiveness with each data cycle.
For example, one of our banking clients implemented our pre-collection decisioning engine for a portfolio of 50,000 active customers. Within 90 days, the solution automated over 70% of preventive outreach, increased effective payment promises by 35%, and reduced operational costs by 22%.
The key is acting early. With technology that enables informed decisions and hyper-personalised campaigns, credit management shifts from a defensive function to a strategic value driver for the entire organisation.
In short, prevention is more profitable than recovery. And with AI-powered pre-collections, you gain not just efficiency, but foresight, control, and empathy. At Algonew, we believe the future of recovery begins before the due date, and we’re already building it with cutting-edge technology.
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1. We’re excited to learn more about your goals! Schedule a 20-minute Hello call today here and let’s discover together which Algonew´s tech solutions fit better with your company: 📅
2. Let’s continue with your FREE CUSTOM DEMO! After our brief meeting, we can arrange a genuine demo with your team to show you live how our technology works, tailored to your objectives and needs.
Already know which Algonew´s technology your company needs? Email us at marketing@algonew.com or fill out our contact form here, describing your type of business or industry, what tasks or goals you wish to accomplish, and which Algonew technology solution you want to try.
Discover all our Smart Technology Solutions based on Artificial Intelligence & Neural Networks for professionals and much more!
Our Intelligent Solutions are powered by the latest technology in Artificial Intelligence and Natural Language Processing (NLP)
At AlgoNew we specialize in infusing intelligence into your digital interactions, empowering your company to deliver a tailored and efficient customer experience. Our methodology integrates intelligent decision management, natural language processing, and advanced analytics.
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In the ever-evolving landscape of digital relationships, AlgoNew stands at the forefront, turning these interactions into revenue. Embrace the future of business dynamics with AlgoNew, where every interaction is a step towards a more intelligent, efficient, and customer-centric approach.
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