1. Social Media in the Debt Collection Industry

2. If you can communicate, you can collect
DEBT COLLECTION 101
If you can communicate, you can collect
If you can't … outsource

3. “Call centres will disappear within the next 24 months”
MANY OPINIONS
“Call centres will disappear within the next 24 months”
“All call centre agents will be replaced with software communicating with debtors via social media platforms”

4. WHAT IS SOCIAL MEDIA?
Social media is the collective of online communications channels dedicated to community-based input, interaction, content-sharing and collaboration.
Let’s just call it IM

5. Most popular global mobile messenger apps as of January 2018
IS IT POPULAR?
Most popular global mobile messenger apps as of January 2018

6. Number of mobile phone messaging app users worldwide from 2016 to 2021
WHERE IS THIS GOING?
Number of mobile phone messaging app users worldwide from 2016 to 2021

7. 24 million credit active consumers
BACK TO OUR WORLD
18 months ago
24 million credit active consumers
Outstanding credit balances = R1.6 trillion
Impaired accounts = 20 million
53% of consumers with debt = 31-45
More than half of consumers use 75% of their salaries to repay debt

8. Statistics of civil cases for debt, November 2017:
STATS SA
Statistics of civil cases for debt, November 2017:
Number of civil summonses issued for debt
Number of civil judgements recorded for debt

9. THE REAL WORLD
Municipalities:
0.8% of book per month
Non-paying culture

10. DIFFERENCE BETWEEN SMS AND IM
SMS developed for cellular phones as an alternative to calling
IM developed for use in personal computers over Internet
SMS sent at a cost per message
IM usually costs only data usage
SMS often limited to country’s borders
IM not limited to a country

11. BUT … WHAT IS THE PURPOSE OF THE TECH?
IM is a bi-directional interaction
Requires that both communicators are willing participants
One can block or report the other
and exit (avoid) the discussion

12. SMS is a one-directional interaction with reply functionality
WHEREAS …
SMS is a one-directional interaction with reply functionality
Push-communication

13. The Business Day, 12 September 2017
THE SOUTH AFRICAN DEBTOR
“Credit extension is growing faster than job creation, and the moribund economy cannot carry that burden forever”
The Business Day, 12 September 2017
World Bank Report: South Africans = world’s "biggest borrowers“
South Africans are failing to manage their debt responsibly
Some credit providers missing the mark re criteria in affordability assessments
Credit use is outpacing employment growth
Over-indebted gap is widening
2 out of 5 consumers have impaired records
Credit facilities = 65% of credit accounts and
Unsecured credit = 14.6%

14. THE SOUTH AFRICAN DEBTOR
“Officially, two out of five consumers are credit-stressed, and unofficially, the picture is much worse.”
Almost half the debtors contacted by a number of sample firms using our software are unwilling participants to the discussion

15. DIFFERENT STRATEGIES For the willing participants IM
For the unwilling participants
Phone, SMS, , etc

16. Learn to accurately split your book before you use social media
GOOD TECH, BUT …
Learn to accurately split your book before you use social media

17. THAT’S ALL FOLKS
Thank you