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.

For sophisticated debt recovery solutions, look no further. Transform your approach to debt management: our flexible collections and arrears services are proven to cut operational costs and improve customer retention.


Why Choose Target to Support Your Collections and Arrears

We are experts in financial services collections, with a host of high-profile clients using our debt recovery services. You can expect innovative debt recovery 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.

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 Debt Management and Collections Approach

Choose Target to manage your debt collections services and you will benefit from our sophisticated software and customer-focused 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

An advanced online management system, cutting operational cost and processing times for both simple and complex queries.

Collections and Arrears Processes

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

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

Collections Strategies

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

Customer contact is optimised and tailored to individuals’ circumstances, resulting in an increased payment yield.

Vulnerable Customer

Vulnerable Customer Management

Effectively supporting those who need it most with compassion and skill. As part of our debt management services you will benefit from:

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


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

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

We're Different

We optimise end-to-end consumer debt recovery services by deploying proven digital and open banking solutions:

Deep domain expertise in delivering debt 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 debt 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

Benefit from advanced software and services supplied by our partners.

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

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