Payment Behavior in the Early Age of Digital Economy

Bratasanu Vlad, GM Digital Bricks

Romania is one of the eastern European countries with the lowest number of invoices paid on time, alongside Greece and Slovakia. 7 out of 10 companies pay their bills with difficulties – Frames & Train Your Brain analysis. The statistics confirm the estimates from the end of last year, when, 78% of the entrepreneurs indicated the payments delay as the main problem for 2019.

Survey on payment experience in Germany with 442 participating companies highlights a changing phase. German companies have increased their average credit period from 29.8 days to 35.9 days between 2017 and 2019.

Since the start of 2019, the Eurozone signals warning of a slowdown in world growth (Coface). Analysts prediction are between a slight economic downturn and recession in 2020 .

What do we expect from next-generation collections models?

Data-driven customer segmentation is at the center of the next-generation collections model and a base of competitive advantage (Mckinsey). Advanced analytics and algorithms can create a deeper understanding of at-risk customer based on this type of data organisations can design more efficient operations and automate part of the process (report attached).

Change resistance is influencing the adoption of new operations models. The Mckinsey study showed that experienced managers sometimes persist with solutions that worked through the last cycle, despite getting poorer results in the present.

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Still there are early adopters that are creating competitive advantage using the next-generation collection models: one European organisation automated 90 percent of communications with clients by developing two advanced-analytics models.

What is your organization strategy?

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