The strategy for Michu Digital Lending focuses on improving loan recovery in Ethiopia through a multifaceted approach. Enhancing communication channels is key, utilizing mobile apps, email, and WhatsApp to maintain touchpoints with borrowers. By diversifying language options and using data analytics, the strategy aims to personalize interactions, encouraging timely repayments through incentives. Decentralizing collection activities involves setting up regional hubs and using local agents to better understand and engage with borrowers. This approach allows for easier payment options and community-focused collection efforts.
Technological advancements are central to the strategy, such as employing machine learning to predict defaults and integrating CRM systems for tracking. Mobile apps and AI-driven chatbots aim to streamline borrower interactions, making the collection process more efficient. Real-time data sharing enhances coordination between regional and central offices. The emphasis on technology ensures a scalable and robust framework for future expansion.
The strategies
⛳️ Strategy 1: Enhance communication channels
- Implement a multi-channel communication strategy including mobile apps, email, and WhatsApp alongside SMS
- Develop personalised communication scripts for different stages of the repayment process
- Introduce automated reminders for upcoming due dates via multiple platforms
- Utilise data analytics to tailor communication frequency and content to individual borrower behaviour
- Train customer service representatives to handle more complex queries through call centres
- Implement feedback mechanisms to refine and improve communication strategies continually
- Diversify language options to cater to diverse linguistic groups among clients
- Incorporate educational content about financial management in communications
- Ensure consistent branding and tone across all communication channels
- Encourage timely payments by integrating rewards or incentives for early repayments
⛳️ Strategy 2: Decentralise collection activities
- Set up regional collection hubs to bring collection activities closer to borrowers
- Recruit and train local collection agents familiar with regional languages and cultures
- Implement a tiered collection approach based on the severity of overdue accounts
- Foster partnerships with local co-operatives or associations for collection support
- Utilise mobile payment services extensively to allow easier payment for borrowers
- Monitor collection performance regionally to identify trends and improve strategies
- Incorporate geolocation data to better assign and schedule field collections
- Create regional collection targets and track progress through key performance indicators
- Regularly conduct community engagement activities to build trust with local borrowers
- Develop a scalable model to easily replicate the decentralised collection framework in new regions
⛳️ Strategy 3: Leverage technology to improve collection efficiency
- Adopt machine learning algorithms to predict potential defaults and prioritise follow-ups
- Integrate a robust CRM system for effective tracking of communication and repayment history
- Develop a mobile app for borrowers to check balances, receive notifications, and make payments
- Utilise AI-powered chatbots for routine collection inquiries and payment processing
- Implement data-driven insights to customise repayment plans tailored to borrower needs
- Enable real-time data sharing between collection centres and central office for better coordination
- Regularly update the tech platform to improve security and user experience
- Capture customer feedback digitally to refine collection process continually
- Create interactive dashboards for collection agents to track their performance
- Conduct ongoing training programs to keep staff abreast with the latest technology tools
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
