Historically, the collections process depended heavily on phone calls, letters, and emails. These methods often feel impersonal and, worse, easily ignored. But consumers today are more connected than ever, and are more likely to respond via WhatsApp, SMS, or web chat than to answer a phone call from an unknown number. Conversational AI meets people where they are, enabling scalable, two-way digital conversations that feel more human than transactional.

What makes it so impactful is its ability to manage large volumes of personalised interactions simultaneously. Unlike static automated messages, these systems understand context, interpret natural language, and respond promptly with empathy and relevance. This allows customers to communicate with their credit provider in ways that suits them through a personalised journey, often without needing to speak to a live agent.

Designed to reach more customers and keep them engaged, guiding them towards positive outcomes, it enables more efficient customer interactions through AI-powered messaging, automation, and omnichannel communication. By integrating across digital channels, these technologies meet consumers where they are and offer consistent, compliant support at every stage of their journey.

The benefits for the credit industry are significant. By automating routine tasks such as setting up payment plans, collecting income and expenditure data, or managing annual reviews, organisations free up agents to focus on complex cases that require a human touch. This method not only boosts efficiency but also lowers operational costs and helps ensure compliance with Consumer Duty and other regulatory obligations.

Importantly, it helps build trust during a period when many consumers face financial uncertainty. Sensitive issues, such as arrears or debt repayment, require careful handling. Intelligent automation ensures consistent, compliant messaging while maintaining the empathy and nuance needed to guide customers towards positive outcomes.

The evolution of digital engagement is not just about reducing friction, but about rethinking customer support as attentive, reachable, and respectful. With the right strategy, conversational AI can simplify processes and foster stronger relationships.

The credit industry has a chance to completely reshape its engagement approach. Those who use conversational AI not just as a tool, but as a key part of their customer experience strategy, will be better positioned to support financially vulnerable customers and do so at scale, without sacrificing quality of care.