Swipe Recoveries Experts Limited: Changing the Debt Collection Landscape in Kenya

The company has adopted customer-centric approaches to debt recovery, focusing on communication and tailored solutions to support debtors in fulfilling their obligations while preserving creditor interests

The debt collection industry in Kenya plays a significant role in recovering unpaid debts for businesses and financial institutions. The industry is governed by various laws including the Banking Act, The Central Bank of Kenya Act, The Consumer Protection Act, as well as The Data Protection Act. The laws set guidelines to ensure fair practices and protect consumers from harassment or abuse by debt collectors.

The industry comprises various players, including debt collection agencies, law firms specializing in debt recovery, and in-house debt collection departments within financial institutions. One such player is Swipe Recoveries Experts Limited, a debt collection company that was established in 2009. “Primarily, we started by offering debt collection, investigation, skip tracing and asset searches,” says Boniface Kasina, CEO & Managing Director of Swipe Recoveries Experts Ltd.

Later on, the company was licensed matters auctioneering. It can therefore repossess and sell movable and immovable assets on behalf of it clients within the confines of The Auctioneers Act. The law governs the activities of auctioneers who are involved in debt collection processes. It establishes rules and regulations for conducting auctions and sets standards for professionalism and accountability.

Indeed, since establishment, Swipe Recoveries has grown steadily to become among the leading debt collection companies in the country. It boasts of a collection rate of 82 percent and a client base of 149.

Basically, what has made the company grow over the years is putting the interest of the clients’ first. For instance, the company’s debt collection services are generally based on a no collect no fee basis once the file is placed with them. Swipe Recoveries is also founded on the fundamentals of honesty and integrity.

Competitive Advantage

Having been in existence for the last 15 years, Swipe Recoveries understands the ins and outs of the debt collection industry. It is well versed with the market, and endeavors to bring order in an industry that for so many years, it has been viewed as contentious.

In terms of leadership, Mr. Kasina observes that most of the company’s managerial staff are individuals who have previously worked in the banking sector in similar positions. Others have worked in credit departments meaning that they understand the credit cycle.

Furthermore, how Swipe Recoveries approaches debt recovery sets the company apart from others in the industry. “We are firm, but cautious to people.”

Field operatives are also well trained to help them become strong professionals matters debt collection. The company boasts of highly experienced personnel in the field of credit management and thrives in engaging strategies that suit and adapt to the changing environment.

Market Acceptance

Clients are increasingly embracing the services offered by debt collection agencies, and Swipe Recoveries is no exception. There is no doubt that debt collection agencies have specialized knowledge and experience in recovering debts efficiently. Clients recognize the value of outsourcing this task to professionals who understand the legal and cultural nuances involved in debt recovery.

Having started with only one client, Mr. Kasina observes that their client base have grown to 149 over the years. He further points that the increasing embracement of debt collection services by clients reflects the recognition of the value proposition offered by professional debt recovery agencies in terms of efficiency and expertise.

Furthermore, debt collection is more of a problem-solving process. It entails an array of things such as understanding why the debt exists, negotiating repayment solutions, managing communication and offering support among others. “At Swipe recoveries, our main objective is solving our clients’ problem of unpaid debts.” Matters pricing arise after that gap has been closed.

Approaching Ethical Debt Collection Practices

Debt collection is often viewed as a contentious industry. In fact, many people hear about debt collection and they don’t want to be associated with it. However, for Swipe Recoveries, with leaders who have a background in financial institutions, and having worked in the corporate world, the company engages in training its staff on how to work professionally. “We are providing sensitization by first training our people before approaching the debtors. By getting the debtors to trust us, we are able to understand why the debt exists in the first place.” Is it due to financial hardship, oversight, or disputes? By identifying the root cause, collectors can tailor their approach to address the underlying issues and come up with a payment plan. Bottom line, debtors need to understand that they must settle their debts.

At Swipe Recoveries, collectors also sign a code of work ethics that has dos and don’ts. It for instance prohibits collectors from calling debtors and night or harassing them.

There is also the Data Protection Act that restricts the unethical behavior of harassing debtors or contacting their relatives or friends demanding for money. The main objective of the Act is to protect debtors and caution the collectors.

As the chairman of the Association of Debt Collectors, Mr. Kasina points out that they are pursuing and negotiation the government, especially the members of parliament, to enact a law that guides debt collectors and the public. It will help people to know their rights as well as their limits. The law is aimed at controlling and bringing order to the debt collection industry.

Embracing Technology

Many debt collection agencies leverage technology to streamline their processes, track debtors, offer automated reminders, and communicate effectively. They benefit from access to these technological tools, which enhance the efficiency and effectiveness of debt recovery efforts.

According to Mr. Kasina, Swipe Recoveries has embraced technology in its day to day operations. On matters communication, it uses autodials, as well as smart collect system that generate debt cards, SMSs and emails.

By using technology, the company is able to know how many debtors have been contacted in a specific day, how much money has been collected and the turnaround time.

Technology also helps to trace people who are not contactable, for instance, those who never pick up their calls. By following their socials like Facebook, you can know their place of work and make follow ups from there.

Rise of Fintech Companies

Undoubtedly, fintech companies have grown steadily in the past few years. Financial institutions are also on the rise, and this according to Mr. Kasina is an advantage for the debt collection industry as it helps them to stay afloat. The rise of fintechs has facilitated the growth of digital lending; leading to a surge in consumer debt, and this is where debt collectors come in.

Worth noting is that about70 percent of loans granted are unsecured, while those offered through collateral is about 20 percent. Most debt recovery companies deal with unsecured loans.

Mr. Kasina however notes that most fintech companies extend loans to individuals they have never met. They only rely with the details that loan applicants provide during the application process. This, according to the CEO is very tricky.

Future Trends and Challenges of Debt Recovery

The debt collection industry faces several challenges in Kenya. To start with is failure to embrace technology and artificial intelligence. Debt collectors must move into that space and fully maximize it.

Another challenge is the emergence of the Data Protection Act in Kenya. When debtors understand their rights, some become stubborn while others intentionally refuse to pay. Data protection is also charging debt collectors unimaginable penalties in case they are reported by the debtors.