In New Delhi, the landscape of loan collection is evolving with the introduction of AI-generated avatars as collection agents. These digital figures, designed to emulate lawyers or business professionals, engage borrowers through video calls, employing a brisk, legalistic tone to encourage loan repayments. Major private banks and financial institutions, such as ICICI Bank and HDFC Bank, are leveraging these cost-effective AI solutions, which outperform human agents by making 20 times more calls at a reduced cost of 40-60%. Industry experts estimate an impressive resolution rate of 80-85% for AI-generated interactions, particularly for early-stage delinquencies like personal loans. While AI agents can maintain a polite demeanor, compliance with Reserve Bank of India (RBI) regulations regarding respectful communication during collections remains a concern. Service providers like Credgenics and Oriserve are at the forefront of this shift, promising empathetic, efficient debt recovery solutions while navigating regulatory frameworks.
Source link
