Debt. It's a part of everyday life and impacts us all. From the Government to the consumer, levels are coming down from an all-time high, but are still at worryingly elevated levels, fuelled by the availability of cheap credit and low interest rates. For many organisations in the utilities, financial services, telco and retail sectors, bad debt continues to impact financial performance.
The situation is expected to get worse. Interests Rates have been at record lows for many years; in the UK market, for example, the interest rates have now been at 0.5% for over five years. When interest rates do rise, the commonly held view is that this will tip many other people into debt as mortgages take up a bigger percentage of their monthly spend. This is expected to impact those organisations who offer credit, including utility providers, retailers, loan and credit card providers in particular.
Trillium conducted a survey in March 2014 to understand how poor data quality impacts an organisations credit and debt collection activities. 62 people from both Debt Collection Agencies and enterprise creditors responded to questions on the causes of poor quality data, the resulting impact of this and likely collection rate improvements with better quality data. It also revealed that whilst many organisations were improving the data they hold on clients by enriching it, there were some fundamental steps that could be taken to improve the data you already hold.
You can access the full report here to find out more about the survey findings.