Digital collections can slash costs by two-thirds, says Creditas co-founder

Our data reflects a steady increase in self-service digital payments, said Panwar

Creditas Solutions wants to rewrite the collections business with its fully-automated digital offering, Ethera. It claims that lenders can cut collection expenses by two-thirds, even as borrowers are sent personalised nudges in a humane, non-intrusive manner, which helps reduce delinquencies. “There’s no scope for customer harassment or unsavoury experiences, which happen with manual collections,” says ANSHUMAN PANWAR, the firm’s co-founder, in a conversation with Raghu Mohan. Edited excerpts:

How is the digital route to debt collections going to better the existing system?

The manual procedure of collecting debt is way too tedious and also a wrong approach to deal with customers