Rising micro loan stress: Lenders tap digital debt collection platforms

Spocto X and Credgenics are end-to-end debt collection platforms focused on digitizing the entire collection process

Amid increasing delinquencies in micro loans, lenders are tapping online debt collection platforms to boost recoveries.

 

These platforms offer services like call reminders, Whatsapp and SMS notifications to customers and also analytical solutions for field staff engaged in collections.

 

“As the delinquencies in the microfinance institution (MFI) sector have increased in the last few months, MFIs are increasingly seeking collection solutions that cater to last-mile recovery through digital, calling, and field channels. Given the nature of their portfolios, most MFIs now prefer automated and analytics-driven solutions that allow them to execute their own collection strategies effectively,” said Devarsh Mapuskar, business