Trends among consumers
• A transition to cell phone and VoIP system usage over wire-line as 'phone' of choice in households is occurring
Trends among creditors
• Billing and
Customer Information Systems are aging and are costly to replace or upgrade
• Operational
costs are increasing; but self-service options (IVR and web-based) that include
minimum payment with a credit card are reducing costs (Contact Centre and
field) in utilities sector
• Write-offs
will continue to increase in 2008
• Many
companies are reviewing security deposit policies and account set-up requirements;
especially phone number verification and type
• Some
companies recognize that a policy of only treating final accounts doesn't
work well as a debt recovery strategy; in fact it increases the risk of accounts
going to write-off
• Monitoring
and ensuring accuracy of customer information is key to reducing risk across
the account portfolio