Despite recent improvements in the economic landscape, many UK households continue to face significant financial pressures. While inflation has returned to 2% as of May 2024, the struggle is far from over for the lowest-income families. The Resolution Foundation reports that cost-of-living pressures have not fallen as fast as inflation, with housing costs now moving centre stage.
At Target Group, we recognise that these challenges persist. As a leading provider of collections services for financial services and public sector bodies in the UK, we're committed to delivering positive outcomes for our clients and their customers alike.
Proactive support in challenging times
The cost-of-living crisis has significantly impacted many households, particularly affecting vulnerable customers who require additional support. And recovery will take some time. Recognising this, we are implementing a series of enhancements to our processes, aimed at encouraging customers to seek help early - ideally before missing any payments.
Our approach focuses on three key areas:
- Early intervention: We're enhancing our ability to identify early signs of financial difficulty, allowing us to offer support proactively
- Clear communication: We're providing more precise information about the long-term implications of forbearance options
- Informed decision-making: We're empowering customers to make well-informed choices about their financial future.
Innovative solutions for better outcomes
To achieve these goals, we've introduced several solutions:
Financial modelling tool
We've developed a sophisticated tool that enables our agents to provide customers with clear, accurate information about how forbearance arrangements will affect their overall balance and credit file. This tool allows for real-time calculations of various forbearance options, helping customers understand the long-term implications of their choices.
Comprehensive financial difficulty training
All colleagues in our Primary Servicing, Early Arrears, and Forbearance teams are undergoing specialised training to identify early signs of financial difficulty and manage these sensitive conversations effectively. This training includes guidance on using our new Financial Modelling Tool, ensuring our team can provide the best possible support to customers.
Enhanced customer communications
We are refining our customer communications to better highlight the support and advice available, both before and during financial challenges. Additionally, we're implementing a system to send confirmation letters to customers when their forbearance period is ending, clearly outlining any associated impacts.
A commitment to transforming customer experiences
We believe that by combining innovative technology with empathetic, well-trained collegues and agents, we can make a real difference in the lives of those facing financial difficulties. Our approach not only benefits the customers we serve but also supports our clients in meeting their regulatory obligations, maintaining consistent collections revenues and fostering positive relationships with their customers.
As we continue to navigate these challenging economic times, Target Group remains committed to evolving our services, always with the goal of delivering the best possible outcomes for customers in financial difficulty. By doing so, we're not just providing a service; we're offering hope and practical solutions to those who need it most.
