Many retailers offer credit to customers through their store cards and other formal credit agreements. However, it is estimated 4 million UK adults can only afford to make minimum repayments on their store cards each month.

Due to cost of living pressures and changing shopping habits in the UK, default rates on retail credit are set to increase in the forthcoming years. Many retailers say the offer of credit is crucial to their strategic success and helps them to further understand the buying patterns of customers. This leaves many retailers caught in a perfect storm of having to offer credit to remain competitive and access the customer insights they need to keep up with ever changing market trends.

Energy and Utility companies face unique challenges when collecting outstanding debts as they operate in a semi-regulated marketplace. Attempts to recover debt pose significant issues in terms of customer perception, engagement, loyalty and enforcement.

However, it is not all customer-based forces which are affecting collections in the Energy and Utilities market. Many organisations are heavily reliant on inefficient operating models, understaffed debt-collection teams, inferior risk frameworks and a lack of access to the right tools and skills required for a successful debt collection process to be put in place.

Within the framework, Sopra Steria will bring the advantages of emerging technology to the forefront of government debt collection. The solution will enable government departments to better assess the citizen or business situations when recovering monies owed. It can help debt collectors make a fair assessment on the affordability and vulnerability for each individual and business, to ensure a suitable debt collection process is put in place.

As part of the newly created Debt Resolution Services framework and having secured accreditation from the Financial Conduct Authority (FCA), Sopra Steria will work with the government to revolutionise the debt collection process, with a strong focus on treating customers fairly and providing better customer outcomes.

Debt Management in Government is complex. Resource constraints, a lack of data and disparate collection strategies can make collection more difficult and expensive, and even lead to unintended consequences such as eroding Social Value. All of this prevents Government departments from being able to invest in the activities and programmes of work that will make a real difference to citizens’ lives today and in the future.

By making greater use of data, offering digital and non-digital channels, different communication methods, and adhering to high standards of ethics, we believe debt management can work better for Government and citizens.

Debt Management for Banks and Building Societies is crucial to business success. After all, credit is at the heart of most customer relationships. So why, after all these years, are Banks and Building Societies still finding they have a problem with debt collection? Why are they still overly reliant on costly late-stage litigation and enforcement action? Why are many customers still dissatisfied with how their Bank or Building Society treats them throughout a collections lifecycle?

There is no one single answer to these questions. However, at Sopra Steria we believe there has to be a better way forward. We have developed a debt management approach which aims to improve the collection rate of outstanding debts, earlier in the customer lifecycle, and takes into account different types of debtors and their preferences.