RING, The Digital Lending Startup Disrupting The Way India Collects Debt
For years in India, there has been a taboo around borrowing because of the way debt is recollected by collection agents. With new-age start-ups entering the market, disbursal of credit has become more efficient and convenient but it is time that players change the way debt collection is perceived in the country. Consumers today are opting for brands that have a high ethical compass beyond offering an attractive product. At RING, we realized this early on and have incorporated ways in which debt collection can be made more humane with a focus on the customers well-being rather than targets for collection.
RING believes that when debt collectors use ethical practices, it can lead to a more positive experience for everyone involved, which can ultimately benefit the financial health of both parties. This helps maintain customer trust and loyalty, increasing stickiness. Customers are more likely to repay loans to a company that treats them fairly and respectfully, even if they are experiencing financial difficulties. Here are some parameters that we have introduced as a company, to ensure our customers have a hassle-free experience and at no point feel threatened. We make sure that all our collection partners are trained and briefed on our practices and follow a zero-tolerance policy when norms are breached.
Humane Debt Collection: RING has made an effort to integrate ‘humaneness’ into its DNA when it comes to the collection of debts. For instance, consideration is given to customers when/if they request calls from RING be stopped for a few days due to an exigency. This humaneness extends to late repayment fees, which are waived in case of any one-time emergency or technical error.
The full list of mandates RING follows to ensure the humane collection is included in its debt collection manifesto. Some of the simple, yet impactful steps followed include:
AI/ML security: From its beginning, RING invested heavily in designing a proprietary security algorithm that incorporated AI and ML to minimize malicious breaches as much as possible. The insightful move was to add such security against its own agents to ensure that personal user data could not be accessed by anyone in the company. The essential data that customers must provide for RING’s services is analyzed and utilized autonomously and without direct human intervention. From the CTO to the intern, no one has access to personal information, making malicious debt collection very difficult.
Disciplinary action: Finally, in case evidence of fraud, misbehavior, or violence against a customer is uncovered, RING has a specialized team stationed in-house to investigate and reprimand the accused appropriately if found guilty. In case of gross misconduct, the team is even authorized to recommend the person be severed from the task. This adds a tangible and effective deterrent against wrongdoing and builds customer trust.
The Way Forward
As the digital age continues to evolve, it is likely that ethical debt collection practices will become increasingly important for businesses that want to maintain customer trust and loyalty. By adopting a customer-centric approach to debt collection and leveraging emerging technologies, businesses like RING can change the way Indians borrow and repay debts.
