Combining AI & engagement to intelligently manage arrears
Sustaining tenancies is more complex than simply using algorithms to score the future risk of arrears. To us, it's about an engagement led approach which looks to maximise the success & longevity of tenancies by understanding residents, targeting financial capability building & income maximisation and creating the environment for residents to have the trust in their landlord to notify them when there is a change of circumstances or life event which is likely to create an income shock.
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By having an upstream & preventative approach to arrears management, we reduce the service load on income teams & automate the collection process by understanding resident payment behaviour, to understand which residents are most in need of tenancy support.
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By freeing up income officers time to focus on the complex cases by automating collections, more tenancies can be sustained.
The Arrears-AI solution integrates with the Engage-AI solution, allowing you to train and deploy tenancy sustainment AI Agents where appropriate, as well as opening up real time communication via SMS, What's App, Facebook, Instagram, getting over the communication barrier, when some residents prefer not to engage via telephone.
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Arrears Automation
Understand arrears behaviour & automate the “disorganised” low risk cases via SMS collection, focus & prioritise the “in-need” who require immediate support to help sustain their tenancy & leverage behavioural science & engagement to nudge the "strategic"non payers into action. By focusing on need and risk case loads can be reduced by 30%-40%.
Proactive outreach & income maximisation
The reduction in case load, means that more time can be invested in targeting those groups who are financially most vulnerable & engaging and supporting them. By spending more time on income maximisation activities & helping tenants with benefit health checks, discretionary housing payment applications & exploring if alternative payment arrangements can help, more tenancies can be sustained.
Invest in developing financial capability
By understanding your customers better, certain groups that are known to be more at risk of arrears can be supported proactively, by engaging with them early and developing their financial capability. This allows you to support your most vulnerable customers.
Predicting arrears & automating prevention
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Our engagement led approach which builds trust & encourages customers to share changes in circumstances early via inbound engagement , combined with predictive analytics which enables outbound engagement to offer support to those who need it most, helps tenants avoid the stress & anxiety of arrears and allows them to access support when they need it most.
Guide on Effective Rent Arrears Management
““Encourage tenants to inform landlords of any change in their personal circumstances and any likelihood of them missing a repayment. This requires landlords to create a supportive environment where tenants feel able to report difficulties rather than avoiding them."
Benefits
Sustain More Tenancies
Early intervention & case prioritisation is critical; by building trust through engagement outreach & developing pro-active approaches, more tenancies can be sustained.
Reduce Arrears Balance
By reducing case volume, enabling early intervention and prioritising those most in need, combined with enabling a proactive focus on prevention reduces arrears by 20%-25%
Reduce Income Officer Case Load
Automated collections allow you to reduce case volume by 30%-40% & enable you to focus on need & risk, devoting more time to those tenants who need it most.
Help Vulnerable Tenants
Help the most vulnerable in society and support those who need it most by helping to keep them in a warm safe home, during the most challenging of times.
CIH Cost of living crisis briefing
“56% (of Social Housing Tenants) didn't know that help or support would be available to them if they faced a financial struggle."