Addressing Collection Challenges Faced by Financial Institutions

This PayTech Bytes episode explores the collection challenges faced by financial institutions in India. Jaya Prabhu, Head of Banking and FinTech Partnership at Worldline India, explains the current state of digital payments adoption and solutions for improving collection processes in the financial sector.

From a financial institution perspective, receivables management is crucial for maintaining liquidity and managing non-performing assets. While 60-70% of companies in segments like NBFCs, insurance, and AMCs have adopted digital payments, a significant portion still relies on traditional payment methods, creating challenges in the collection ecosystem.

For businesses, particularly in tier 2 and tier 3 cities, the main challenges include cash collection, accounting of collected cash, and reconciliation. Worldline is addressing these issues by developing a comprehensive solution that integrates all modes of digital payments into a single platform, streamlining both collection and customer acquisition processes.

JP highlights that the solution creates stronger merchant-customer relationships while addressing collection challenges. The platform aims to bridge the gap between customers and merchants, offering a unified approach to digital payments. The solution goes beyond just handling collections - it enhances the entire customer acquisition journey, creating more stickiness between merchants and their customers while streamlining the payment process.

Worldline's solution particularly targets the 25% of customers in lending-related organizations who still rely on cash and check payments. The company's innovative approach helps financial institutions modernize their collection processes while maintaining compliance with regulations. JP concludes by advising financial institutions to embrace digital payment ecosystems and carefully evaluate payment facilitator innovations that align with their business strategies.

We hope the insight of embracing digital payment ecosystems in order to overcome collection challenges faced by financial institutes is the way forward. Stay tuned for the next episode of PayTech Bytes, and feel free to reach out to us at ⁠⁠⁠⁠marketing.worldlineindia@worldline.com for any questions or collaboration opportunities.