Target Group has recorded a 40% increase in efficiency and colleague satisfaction in managing arrears, following the deployment of its AI-powered Collections Guru agent.

Collections Guru, which has been developed in partnership with Tech Mahindra, uses AI to gather and interpret complex information and historic case data to simplify arrears management, guiding advisers towards the most appropriate customer outcomes.

Rather than relying on multiple systems, the AI agent presents advisers with the relevant information about the case in one place.

As a result, Target is able to eliminate subjective decision making, which reduces handling times and minimises both adviser fatigue and compliance risk, leading to more consistent and positive outcomes for customers in arrears.

Across its debt collection and arrears management operation, Target has recorded a 30% reduction in average handling times, a 40% reduction in toggling between different screens and a 40% drop in dependency on subject knowledge.

Growth director at Target Group, Melanie Spencer, stated: "Rather than talking about it or pecking around the edges, Collections Guru is the latest deployment of AI technology across our business to enhance the human touch and improve our service.

"It is great to see tremendous results already in what is one of the most critical and sensitive parts of our operation and a key area where our lender clients look for support.

"In the current climate, all eyes will continue to be on arrears and collections management, making sure that lenders are responding consistently, providing the right support and delivering good outcomes for clients. This latest advancement means we are able to keep human expertise at the centre of this process and utilise data-driven insights to provide instant and accurate support to clients in a consistent, cost-effective and compliant way."

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