Debt Collection Without Prejudice: When AI Collects Money – But With Feeling

In the realm of debt collection, artificial intelligence is being employed to bring a more personalized and less confrontational approach. Pair Finance, an AI-driven debt collection agency, leverages data to tailor its communication strategies, aiming to resolve outstanding payments with greater empathy and efficiency.

Jennifer Schimanko, the managing director of Pair Finance Austria, highlights that many individuals end up in debt collection processes not due to unwillingness to pay, but due to simple errors. These can include incorrect reference numbers, transposed digits, or missed payment deadlines. Pair Finance's algorithm analyzes over ten billion data points, considering factors like the debt amount, communication history, and the debtor's behavior.

"It happens much more often than one thinks that people end up in such a process not because of actual unwillingness to pay, but because of small mistakes: a wrong reference, a wrong order number, or a transposed digit," Schimanko explained. The system monitors actions such as opening emails, visiting payment pages, or attempting installment plans, then determines the optimal channel, timing, and payment options for contact.

“

It happens much more often than one thinks that people end up in such a process not because of actual unwillingness to pay, but because of small mistakes: a wrong reference, a wrong order number, or a transposed digit.

Stephan Stricker, the founder of Pair Finance in 2016, sought to apply marketing principles of timely and targeted messaging to debt management. "What digitalization has lacked until now was individuality," Stricker stated. The company, which began in Germany and now operates in twelve countries, counts major clients like Klarna, Zalando, and Hellofresh among its customers.

This data-based approach allows for individualized communication, a stark contrast to traditional, often rigid, collection methods. By understanding user behavior and offering flexible solutions, Pair Finance aims to improve the recovery rate while mitigating the negative experience often associated with debt collection.

“

What digitalization has lacked until now was individuality.