Although the Asia-Pacific (APAC) region is currently under a severe amount of debt pressure, the rate of regional household and business borrowing has actually slowed in recent years. That being said, debt levels remain high overall. Across APAC, a 5% increase in the household debt to GDP ratio over a three-year period is expected to lead to a 1.25% drop in GDP growth in another three years.
EXUS Collections & Recovery Blog
In a world where you can access mobile banking in the blink of an eye, the technology used to identify customers still falls far behind.
The media loves chronicling the differences between generations. Each day brings a new headline or scare story, casting some aspersion onto people older or younger than us.
By now, banks are used to fintech scare stories. It’s all challengers, startups and open banking. The new guys, it’s said, are coming for the incumbent banks.
Truth is that, for now at least, these challengers struggle to match the power of an established bank. The more likely result is partnership, rather than competition. But there is the exception: The FAANGs (Facebook, Amazon, Apple, Netflix and Google).
Facebook, Amazon, Apple and Google have already embarked on well-documented forays into financial services. So what, we wonder, would their collections departments be like if they become fully-fledged banks?
On the surface, the finance sector might seem equitable: over half of the world’s employees in the financial services sector are female. Drill deeper though, and a new picture emerges.
While the gender split, in terms of sheer numbers, is about right, leadership positions take on an altogether more masculine veneer. Women hold only 25% of senior management roles in the global Financial Services industry.
Tags: debt collection
In the mid-nineties, Bill Gates said that ‘banking is necessary, banks are not’. Back then, Gates’ pithy comment was merely a bit of throwaway futurism. The supremacy of the big banks seemed insurmountable. But as the years passed, his words have become increasingly prophetic.
Tags: debt collection
Remember the cobrador del frac? Spain’s frock-coated debt collectors took an elaborate name-and-shame approach that emphasised recovering money by any means necessary. It summed up the biggest problem with debt collection: efficiency and customer experience have too often been secondary considerations at best.
Singapore has a problem with credit cards. Specifically, it has a rising problem with bad credit card debt that has to be written off: $20.74 million as of March of this year, according to the country’s Monetary Authority.
While credit card debt constitutes a modest 2-3% of household debt in Singapore, a rise in non-repayment could indicate more significant economic issues to come - think 2008. If credit cards continue to go unpaid, banks will raise rates to compensate for the written-off debt; consumers will find their spending power cut, and the cost of their debt on the rise, which will combine to drive down spending.