02 Nov 2021
Blog

Intelligent Automation in skip tracing. How to automatically read data about debtors from debt collection documents

The business process automation market is growing at a rate of 40.6% annually and has also covered the debt collection industry. Most often, the process of the so-called skip tracing, so that reading data from documents no longer has to be entrusted to the company’s employees. In this article, we will show you what the automation of skip tracing is, what business benefits it brings to the enterprise, and we will present how it works in practice.

Table of contents

  • Intelligent Automation in the debt collection industry
  • The essence of skip tracing: finding key information from multiple documents
  • Intelligent Automation and skip tracing. How can this process be improved?
  • What data and what documents are subject to automatic skip tracing?
  • The benefits of automating skip tracing in the enterprise
  • Who has already reached for the automation of skip tracing?

Intelligent Automation in the debt collection industry

Find out what Intelligent Automation is.

Intelligent Automation is a technology that is conquering the business world and entering new industries. There was also a debt collection sector among them.

According to the Association of Financial Companies, the Polish debt market is growing every year. Along with the growing number of receivables, the number of cases, and thus the volume of documents handled, grows.

According to the Association of Financial Companies, the size of the Polish debt market is constantly growing. Source: https://zpf.pl/badania-i-publikacje/raporty-cykliczne/wielkosc-polskiego-rynku-wierzytelnosci/.

One of the main applications of Intelligent Automation is the automation of document handling processes. In the debt collection industry, companies use thousands of different types of letters, files, certificates, etc., hence this technology perfectly meets their needs.

Therefore, applications of Intelligent Automation are slowly being discovered in this industry, the first of which is the skip tracing process.

The essence of skip tracing: finding key information from multiple documents

In the debt collection industry, companies struggle with the problem of debt collection. Many people incur liabilities, and after the payment deadline, they disappear and change all contact details. Contact with them is difficult, and sometimes even impossible.

Moreover, the number of indebted people is constantly growing. The National Debt Register states that from 2007 to 2008 their number almost doubled and amounted to 686,000.

According to the National Debt Register, the number of debtors is increasing every year. From 2007 to 2008, their number almost doubled and amounted to 686,000. Source: National Debt Register statistics.

On the basis of the BIG Debtors Register, in 2020, unpaid debts of Poles reached as much as PLN 80 billion. More than 2.83 million people had an unpaid liability or a 30-day delayed loan installment.

According to the BIG Debtors Register, in 2020 Poles had as much as PLN 80 billion in unpaid debts. More than 2.83 million people had an unpaid liability or a 30-day delayed loan installment. The number of debtors is constantly growing. Source: https://media.bik.pl/informacje-prasowe/514237/raport-infodlug-polacy-wchodza-w-kryzys-z-80-mld-zl-niesplaconych-dlugow

Skip tracing is all about finding just such people by all legal means. This process is based on tracking the traces left by debtors on the Internet and browsing all existing documents, which will allow you to determine the current location and whereabouts of the debtor. All of this is done to improve the debt recovery process.

Debt collection companies have personal files in which documents related to specific debtors are collected – arrears, contracts or bailiffs. There can be dozens of such documents and it is the employees of debt collection companies that search them manually. What if artificial intelligence could help them?

Intelligent Automation and skip tracing. How can this process be improved?

Intelligent Automation allows for the classification of various types of documents, the extraction of data contained in them and finally their semantic analysis.

In other words, it allows you to find specific phrases in a document and assign categories to them, e.g. 27/03/2021 – date, Postępowa 85 – street, etc. Thanks to this, in skip tracing we can automatically search for key information for us, e.g. PESEL number, KRS number or a handwritten signature.

Intelligent Automation allows you to automatically search for key information in the document, e.g. PESEL number, KRS number or handwritten signature, and then extract this data. Source: Alphamoon Intelligent Automation platform.

The technology automatically processes the entire collection of documents and finds keywords and corresponding values ​​in it, which it then extracts into appropriate databases. The employee then works immediately on the structured data obtained from the system, thanks to which he focuses only on the part that requires human involvement.

What data and what documents are subject to automatic skip tracing?

Skip tracing is based on all documents and information contained in them that may bring us closer to finding the debtor.

Documents that are subject to automatic skip tracing include:

  • contracts,
  • official letters,
  • announcements,
  • bailiff summons.

The data most frequently searched for in documents by people from the debt collection industry are:

  • valid phone number and e-mail address,
  • KRS or REGON number,
  • PESEL number,
  • Bank account number,
  • ID number.

Importantly, any documents and data are subject to automatic skip tracing. Everything depending on the preferences and needs of the company.

The benefits of automating skip tracing in the enterprise

Debt collection companies can process hundreds of thousands of documents per month. Until now, the skip tracing process was done manually in most of them.

Thanks to the automation of skip tracing, searching for information in documents and their extraction happen spontaneously. Now employees work immediately on structured data and can focus only on the part of the work that requires their involvement. This way, they don’t waste time searching through hundreds of documents, which allows them to be engaged in more creative tasks.

The collected structured data is also used in other systems of the organization to make decisions and take appropriate actions. The company strengthens its development potential, and at the same time optimizes the process and reduces costs.

Who has already reached for the automation of skip tracing?

KRUK, one of the largest debt collection companies in Poland, has already taken advantage of the automation of skip tracing. This company had the largest capitalization and market share in 2018.

According to BiznesRadar, KRUK is the largest debt collector in Poland, next to Best and Kredyt Inkaso. In 2018, KRUK had the largest capitalization and market share. Source: https://stockbroker.pl/branza-windykacyjna-mateusz-krupa-erste-securities/.

The company processes up to 400,000 pages of documents per month. Until now, the skip tracing process was done manually in the company. However, KRUK decided to automate the process in order to effectively use their document archives. As a result, repetitive tasks were automated and the debt recovery process was improved.

The automation of the skip tracing process has given KRUK a lot of new possibilities, and thanks to the automation the process has been accelerated 2.5 times.

If you also want to optimize the skip tracing process in your company, arrange a demo and see how our Alphamoon Intelligent Automation platform works in practice.

Let's write your intelligent automation story together.

Start now for free