Collections and Arrears Management

Supporting lenders and their customers as the economic impact of the pandemic unfolds


Throughout spring 2020 the UK government, FCA and Bank of England announced a raft of measures to protect jobs and incomes during lockdown. As lockdown eases, but recession approaches, we will continue to see the impact for years and decades to come.

With mortgage payment holidays ending, and repayments restarting on other loans, there will be increased pressure on lenders to make collections, and carefully manage arrears, in a fair, compliant and ethical manner.

Payment collections

New challenges facing financial services

Such unprecedented times have driven a considerable amount of change across financial services, with lenders having to adapt and evolve. Not only do they need to collect revenue from customers, they can’t at any time forget or neglect their TCF obligations. Even at this time, protecting and supporting vulnerable customers is still critical.

Here we outline some of the key challenges lenders are facing as they balance operational demand with customer support.


Why choose Target to support your Collections and Arrears

We are experts in financial services collections, with a host of clients already using our services. You can expect innovative solutions developed with our strategic partners. We are flexible and adaptable, which means we can integrate with your existing technology estate, giving you rapid results.

It’s really important that lenders can move quickly to respond to changing customer demands. But first, getting a good understanding of your customers and their needs will help in your response.

Discover our bespoke loan software
Four customer types

Four customer types in a post Covid-19 world

We predict there to be four different types of customer following the lockdown measures:

  • The Uncertain
  • The Curtailed
  • The Troubled
  • The Fortuitous

For lenders to be able to provide the best service for their customers, they will need to have a solid understanding of the very different needs of these customer segments, and create customer experience and journeys that support those needs.

Here we explore the four customer types, and how lenders can continue to provide good levels of customer support, especially for those most in need.

4 Customer Types

Here we explore the four customer types, and how lenders can continue to provide good levels of customer support, especially for those most in need

Our Collections and Arrears Approach


Self Service Collections

  • Automated payments processing via IVR and online
  • Online self-service income and expenditure assessments
  • Self-service plans and online plan management

Cutting operational cost and processing times for simple and complex queries


Collections Strategies

  • Open banking tool enabling the use of bank data for income and affordability assessments as customer financial positions change now and in the future
  • Low-cost outbound contract strategies using dialler and SMS

Optimised customer contact tailored to their circumstances resulting in an increased payment yield

Learn more about our loan servicing
Vulnerable Customer

Vulnerable Customer Management

  • Specialist Agents trained to support customers with complex needs
  • Vulnerable Customer Champions within all front-line teams for immediate escalations

Effectively supporting those who need us the most is key to aiding those worst effected by COVID-19



  • Dedicated and specialist complaints handling team
  • FOS complaint handling and regulatory complaints reporting
  • Root Cause Analysts for trend analysis and service improvement

Our dedicated complaints team are not only vastly experienced in handling customer queries but also trend identification reducing repeat complaints and associated cost

We're Different

We optimise the end-to-end collections journey by deploying proven digital and open banking solutions:

Deep domain expertise in delivering collections services with £23bn loan AUM

Our service addresses the now and next challenges, as customer financial circumstances change

Scalable collections operations in the UK with all operational staff enabled for home-based working

Flexible operating model designs, able to complement existing in-house teams

Smart collections strategies using digital self-service and open banking tools

Specialist skills and experienced agents with the capability to service all customer groups

The Collections and Arrears Lifecycle

We deliver the full lifecycle of collections and arrears services to UK lenders for more than £23bn AUM, including commercial, buy-to-let and residential mortgages, secured and unsecured loans.


Strategic Partnerships

High quality and high capacity business communications solutions, designed for financial services. Working with even the creakiest legacy systems, Esendex’s solutions take advantage of digital communications tools to increase consumer engagement across the collections and arrears lifecycle.

Using bank data, DirectID has built a range of value-add services that tackle these issues, helping you to understand your customers. Easy zero-integration solutions with direct access to bank data and instant financial insights into your consumers.

Read our white paper '6 ways lenders can adapt to changing customer needs', written in collaboration with our partner Esendex


Collections and Arrears Processes

Throughout the collections and arrears lifecycle, there are a number of key processes that we deliver for our clients.

  • Vulnerable customers
  • Customer account administration
  • Fulfilment
  • Deceased customers
  • Managing payments
  • Income assessment
  • Customer post and emails administration
  • Account statements
  • Complaints handling
  • Payment plans
  • Disputed debt

Get in touch now to discover how we can transform your operation. Call us on 0845 650 6200.