Sydney-based fintech company InDebted has officially arrived in the UK to offer debt collection fuelled by machine leaning and data science.
InDebted says its UK launch follows a period operating in beta after being granted FCA authorisation in August 2021.
It works with consumers and businesses. For example, the tech firm’s digital platform helps with the recovery of debt. Businesses can give customers the choice to tailor their experience, communicate in the channel they prefer and choose a payment plan that’s right for them. Clients listed on its site include Klarna, PayPal and Afterpay.
Josh Foreman, CEO and Founder of InDebted, comments: “At a time when the cost of living crisis will see an increase in debts, consumers in need of support are being failed by the broken debt collection model. This is leading to unnecessary stress, and poorer outcomes. Customers deserve to be treated with empathy, respect, and most importantly, enabled with convenience and autonomy to manage debt in a way that works for their individual financial position.”
It will have rivals of course in this digital debt collection sector. Names include DebtCo (founded 2018), DebtStream (2019) and EXUS (1998).
InDebted has been around since 2016 and also operates in New Zealand, the US and Canada.
With the news about inflation and the cost of living in the UK being a constant stream of doom and gloom, InDebted probably senses good times ahead for its business model. It’s a case of your pain, my gain.
It also cites consumer polling of over 2,000 UK adults, conducted by Opinium, which reveals the extent of the “negative experiences” suffered by those who have fallen into debt. One in three UK adults (34%) who previously or currently have debts say they’ve been contacted by debt collectors. 64% of those who have interacted with debt collectors said the experience was “stressful”, a figure which rises to 74% among 18-34 year olds.
Overall, two in five stated their experience with collectors was negative. Half (49%) who have dealt with debt collection agencies encountered harassment or aggression, with 53% made to feel ashamed to be in debt.
InDebted doesn’t use phone calls or sending legal letters to contact customers. It works by digital channels such as SMS and email. The company explains that it uses data science models to learn from customer interactions, and so work out the best way to connect with people through the channel they prefer.
The tech firm seems to be doing well. Its business has increased in headcount by 360% in 2021 and reached 270 people in May 2022, who work in 11 countries. InDebted onboarded 93 new clients in 2021 across global markets, and worked with one million customers.
InDebted has completed three funding rounds totalling AUD 50 million (£28 million).
