Hamburg, Germany, November 16, 2022 

• Full potential of AI in receivables management barely being exploited
• Less than half of German companies are (highly) data-driven

The use of data in reminder processes is standard practice at just half (52 percent) of European companies. Even among German financial executives, only 49 percent stated that their companies were (highly) data-driven compared to their competitors. These were some of the insights from the representative EOS survey “European Payment Practices”, which polled 3,200 companies in 16 European countries.

Progressive data protection let down by poor data quality

German and other European companies do not regard data protection and information security as obstacles to the successful implementation of a data strategy. Three quarters of all companies (75 percent) in Germany see themselves as (very) progressive when it comes to information security (as many as 82 percent in respect of data protection). However, companies see a need for action in relation to data volume and quality. Just over half (53 percent) rate their own data volumes as progressive, while just 49 percent feel the same about their data quality. To be able to compete in the long term, companies in Germany need the resolve to implement a data strategy, urges Jakob Spitzer, Director Analytics at EOS. In this context, the effort and investment in the expanded use of data are worthwhile. “Greater transparency and efficiency and the most extensive automation of business processes possible help companies to survive in a digital world.”

The trend towards extending data-driven business processes is positive. More than a third (37 percent) of companies in Europe would also like to use data in future for their receivables management decision-making. In Germany, as many as 40 percent of the companies polled stated that they wanted to continue to expand this area of application. “Intelligent use of data offers major advantages, for example, when it comes to approaching defaulting customers,” explains Spitzer. “For instance, historical data can be used to help make decisions about which communication measure, channel and tone have the greatest likelihood of resulting in payment.”

Artificial intelligence offers potential for receivables management 

The use of artificial intelligence (AI) in particular is becoming increasingly important for a successful data strategy. 32 percent of companies in Europe stated that thanks to self-learning algorithms, AI was already improving dunning procedures at their companies. Another 31 percent are using AI for the initial steps in the receivables management process. A similar picture emerges in Germany, where the percentage of companies reporting this development was 27 and 33 percent respectively. 

Nevertheless, there is no consensus among European companies overall about the usefulness of AI. Whereas 44 percent believe that AI will revolutionize receivables management, 30 percent believe it is not very important. “However, our findings show that data and the use of AI make receivables management even more efficient,” explains Jakob Spitzer. “By analyzing what has happened in the past we can make reliable predictions for the future. At EOS, for example, we generate a range of possible payment plans for settling an outstanding debt. Subsequently, a data-driven algorithm evaluates the probability of success,” adds Spitzer. “Ultimately, only the installment plan most likely to succeed is suggested to the consumer.”

About the EOS Survey “European Payment Practices” 

In partnership with independent market research institute Kantar, EOS conducted phone interviews with 3,200 companies in 16 European countries between March 4 and April 19, 2022, to ask them about the prevailing payment practices in their respective locations. In the spring of 2022, 200 companies (each with an annual turnover of more than EUR 5 million) in each of the countries Belgium, Bulgaria, the Czech Republic, Croatia, Denmark, France, Germany, Greece, Hungary, Poland, Romania, Slovakia, Slovenia, Spain, Switzerland, and the UK answered questions about their own payment experiences and current issues relating to risk and receivables management. This is the 13th time that EOS has conducted the survey.

Further information on the EOS study "European Payment Practices"

About the EOS Group

The EOS Group is a leading technology-driven investor in receivables portfolios and an expert in the processing of outstanding receivables. With over 45 years of experience, EOS offers some 20,000 customers in 25 countries around the world smart services for all their receivables management needs. Its key target sectors are banking, real estate, telecommunications, utilities and e-commerce. EOS employs more than 6,000 people and is part of Otto Group.

For more information on EOS Group, please go to: eos-solutions.com