Using data in a claim is standard for only half (52 percent) of European companies. Even among German financial decision makers, only 49 percent said their company was (very) data-driven when it came to claiming compared to the competition.
This was the result of the representative EOS “European Payment Practices” study, in which 3,200 companies in 16 European countries were surveyed.
Advanced data protection faces a lack of data quality
For the successful implementation of Data strategy In the claim process, German and European companies do not consider data protection and information security an obstacle. Three-quarters (75 percent) of all companies in Germany rate themselves as (very) progressive when it comes to information security – when it comes to data protection, the number goes as high as 82 percent. However, the companies see the need to take action regarding the volume and quality of the data. Just over half (53 percent) rate their data volumes as progressive. In terms of data quality, it is only 49 percent. In order to be competitive in the long term, companies in Germany need to be determined to implement a data strategy in Receivables management appeals to Jacob Spitzer, Director of Analytics at EOS. The effort and investment in expanding data use has been worth it: “Higher transparency and efficiency as well as the greatest possible automation of business processes helps to survive in a digital world.”
The trend towards expanding data-driven business operations is positive. More than a third (37 percent) of companies in Europe also want to use data for decision-making in receivables management in the future. In Germany, up to 40 percent of the companies surveyed stated that they wanted to expand this field of application further. “The intelligent use of data provides great advantages, for example when addressing defaulting customers,” Spitzer explains. “This way, based on past data, it is possible to determine which communication metric promises the most push potential, on which channel and with what tone.”
AI has capabilities to manage receivables
For a successful data strategy, use the gain artificial intelligence (AI) Related. 32 per cent of companies in Europe report that AI is already improving their company’s claim process using self-learning algorithms. Another 31 percent are using AI to manage receivables for the first time. A similar picture emerges in Germany: 27 percent and 33 percent of German companies report this development.
In general, however, European companies do not agree with the benefits of artificial intelligence. While 44 percent believe AI will revolutionize receivables management, 30 percent of companies do not place much importance on AI. “However, our findings show that data and the use of artificial intelligence make receivables management more efficient,” explains Jacob Spitzer. “By analyzing what happened in the past, we can make robust predictions for the future. In EOS, for example, several possible payment plans are drawn up for an open claim. Then a data-driven algorithm evaluates the probability of success,” adds Spitzer. “After all, only the most promising installment plan is offered to consumers.”
About the EOS “European Payment Practices” study:
In conjunction with independent market research institute Kantar, EOS surveyed 3,200 companies in 16 European countries via telephone interviews between March 4 and April 19, 2022 about their local payment habits. In the spring of 2022, 200 companies (with a turnover of more than five million euros each) from Belgium, Bulgaria, Denmark, Germany, France, Greece, Great Britain, Croatia, Poland, Romania, Switzerland, Slovakia, Slovenia, Spain, the Czech Republic and Hungary answered questions about your payment experiences as well as current topics in the management of risks and accruals. The study was conducted by EOS for the 13th time.