We’re all taking longer to pay our bills
Gen X are worst offenders for late collections.
A recent survey found consumers in Asia Pacific (APAC) were taking longer to pay off their household bills, as well as highlighting significant increases in the number of first-time missed payments.
FICO conducted a survey of 37 senior collections managers from across Asia Pacific in November 2016.
Three out of five (60%) respondents from banks, telecommunication and utilities companies said customers in the region had taken longer to pay their bills in the past year.
There was substantial growth within the 60-days-past-due segment, according to 41% of respondents.
Almost three quarters (72%) reported an increase in the number of first-time delinquents (unpaid).
Generation X (35-55) were the group with the greatest proportion of late collections (47%), while older millennials (24-35) were least likely to make late payments.
Respondents said mobile communications and automated collection strategies were the most helpful solutions for customers to make prompt, scheduled payments.
Around 60% of managers said these procedures improved payment efficiency by 1-2 days, while a further quarter of respondents (25%) said their time-to-collect had been shortened by up to two weeks.
78% of managers reported higher customer satisfaction among customers using automated services.
The survey also revealed three in four collections managers anticipate a 10-25% rise in cases during 2017.
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