The partnership seeks to ensure customers with debt are only committing to repayment plans they can afford, in order to help them improve their long-term financial health and break the debt cycle. Ophelos will use Credit Kudos’ Open Banking insights to better understand the current financial position of individuals who have been referred for debt collection by lenders. This will enable the FCA-authorised company to identify repayment solutions that best fit someone’s current circumstances, helping people manage their financial situation better.
Ophelos, which was founded to create customer-centric debt collection products and services, is integrating Open Banking to deliver better outcomes for customers. Already, just two months into deployment, Ophelos has recognised a 68% improvement in customer satisfaction, a 26% increase in recovery rates, and 25% decrease in cost to collect.
In the aftermath of the pandemic, a new debt collection model that enables better outcomes for borrowers, is needed more than ever. One in five (18%) of people considered vulnerable by the Financial Conduct Authority have missed payments or gone into arrears over the last 12 months, with 14% taking on further debt as a result.
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