Credit management is at a tipping point: if you don't innovate, you lose the connection

For POM, the Credit Expo is more than just an annual event, says De Roode. “We've been Credit Expo's platinum partner for years. It is a meeting place where we share knowledge, follow trends and look ahead with the sector. This year's anniversary is a great opportunity to reflect on what has been achieved, but above all to highlight where the field is heading.”

A field in transition

Over the past twenty years, De Roode has seen credit management as a field of study completely change. “Where credit management used to be a purely administrative matter, it has now become a strategic discipline. CFOs, CROs and even CEOs get involved directly. This is not surprising, because credit management directly affects the health of an organization. Its impact on cash flow, customer relationships and reputation is huge.”

And De Roode sees another major shift. “Nowadays, the question is not just: how quickly do I get my money in, but above all: how do I keep my customers. And: how do I prevent (problematic) debts with my customers. The latter, in particular, has been a fundamental change.”

Debt issues

Social debt collection is therefore one of the most important challenges for organizations at the moment, says De Roode. “The debt problem is a major social theme of our time. One in eleven Dutch households has problematic debts and one in five has payment arrears. As a credit management sector, we have a role to play in this. How do you make sure you get paid for your product or service without pushing someone who already has payment problems even further into the debt swamp.”

Staying in touch with each other, with an eye for your customer's personal situation, is important, says De Roode. “And also that you make a feasible payment arrangement. This way, you limit (social) costs and at the same time maintain a respectful relationship with your customer. You can do this, for example, by offering your customer various solutions for paying their outstanding invoice. The customer then chooses the solution that best suits their financial situation.”

Fragmented, difficult to scale systems

Another major challenge at the moment is the software that many organizations still work with, says De Roode. “In the past, organizations often opted for self-build or customized solutions for their credit management software. That gave me a sense of control, but the reality is that internal systems often become fragmented and difficult to scale.” In addition, many organizations work with outdated systems, De Roode knows. “That inhibits their agility and therefore they simply can't keep up with current developments. AI and multichannel customer communication require speed and agility that traditional systems simply cannot deliver.”

The speed of innovation — especially through AI — means that staying behind is no longer an option, says De Roode. “If that was ever an option. Organizations that stick to old structures and technology run the risk of falling behind both operationally and commercially. We are at a tipping point: if you do not keep up with current developments, you will lose the connection.”

Technology as a strategic accelerator

Technology that goes beyond automation can help bridge that gap, says De Roode. “For example, with an integrated platform where organizations can fully digitize, personalize and optimize their credit management. Where AI analyses payment behavior, predicts risks and adjusts communication automatically. On such platforms, customers can manage their own payments via self-service portals, while organizations have real-time insight into their DSO and compliance risks.”

Control and flexibility

Organizations that did self-construction for years now feel the urgency to change tack, says De Roode. “They realize that their internal solutions are no longer future-proof. By opting for an innovative platform, they maintain control and flexibility, while benefiting from technological innovation and proven best practices. Collection, postage costs and staff costs are falling.”

Artificial intelligence, agility and customer focus

It is not a moment too early for organizations to change tack, because in the coming years, everything will be about artificial intelligence, agility and customer focus, says De Roode. “AI is becoming the standard rather than the exception. Organizations that integrate AI smartly can personalize their communication, identify risks early and proactively support their customers. I also expect credit management to become even more intertwined with the broader business strategy. It's no longer just about cash flow and cost savings, but also about providing overview and control for employees, increasing payment convenience and customer satisfaction. This leads to higher customer loyalty and stronger brand value. This makes credit management one of the core areas within an organization where technology, strategy and reputation come together.”
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POM presentation at Credit Expo with Jolanda ter Maten about the power of AI in credit management

Standard payment requests no longer work! Customers expect personal attention.

During the presentation by POM at the Credit Expo late Jolanda ter Maten, strategic advisor on AI, ethics & people-centered digitization, see how AI and machine learning make communication hyperpersonal: the right channel, the ideal tone of voice and the perfect time for every customer. She shares practical examples and results from organizations that are already working with POM's AI and machine learning. The result? More efficient processes, faster payments and satisfied customers. In just thirty minutes, you'll learn how AI makes your credit management team stronger and more effective.
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Innovating is building a head start

When asked, De Roode still has advice for organizations that want to get started with credit management in this way. “No longer see credit management as an operational necessity, but as a strategic domain with a direct impact on the future of your organization. Invest in technology that is agile, compliant, and customer-focused. Embrace AI and modern platforms, dare to let go of legacy systems, and look ahead.”

This is the time, De Roode emphasizes. “Organizations that look ahead and dare to innovate now are building an advantage. The rest will inevitably fall behind. Are you ready to take that advantage? Stop by our stand (number 20) on Thursday, November 6, and be amazed.”