Newport-based Target Group reports 40% efficiency increase following deployment of AI-powered Collections Guru agent

FinTech Wales member Target Group, headquartered in Newport, is reporting a 40% increase in efficiency and colleague satisfaction in managing arrears cases following the deployment of its new AI-powered Collections Guru agent.

Collections Guru uses agentic AI to gather and interpret complex information and historic case data, helping to simplify arrears management and guide advisers towards the most appropriate customer outcomes.

Rather than relying on multiple systems and navigating detailed standard operating procedures (SOPs), Collections Guru presents advisers with all relevant case information in one place. The solution also provides immediate actions based on SOPs and recommended next steps for advisers to follow.

According to Target Group, the technology helps eliminate subjective decision-making, reduce handling times and minimise adviser fatigue and compliance risk, while supporting more consistent outcomes for customers in arrears.

Across its debt collections and arrears management operation, Target has reported:

• A 30% reduction in average handling times
• A 40% reduction in toggling between different screens
• A 40% reduction in dependency on subject knowledge

Collections Guru is the latest AI integration from the digital transformation specialist and has been developed in partnership with parent company Tech Mahindra.

Target Group established its first AI proof of concept through virtual assistants and chatbots designed to support employees with HR-related enquiries. Building on those learnings, the company has since explored ways to integrate AI into customer-facing operations, particularly through its contact centre solution used by financial services institutions.

Through AI and machine learning, Target is now able to summarise customer interactions, monitor and score customer engagements, provide live guidance to agents and identify potential issues or vulnerabilities in real time.

“Rather than talking about it or pecking around the edges, Collections Guru is the latest deployment of AI technology across our business to enhance the human touch and improve our service. It is great to see tremendous results already in what is one of the most critical and sensitive parts of our operation and a key area where our lender clients look for support.

“In the current climate, all eyes will continue to be on arrears and collections management, making sure that lenders are responding consistently, providing the right support and delivering good outcomes for clients. This latest advancement means we are able to keep human expertise at the centre of this process and utilise data-driven insights to provide instant and accurate support to clients in a consistent, cost-effective and compliant way.”

Melanie Spencer, Growth Director at Target Group

Target Group has operated across banking, financial services and insurance for nearly five decades, specialising in mortgage and loan originations, savings and investments, payments, collections and in-life servicing.

The company provides both business process servicing and proprietary software solutions to major financial institutions. Through its fintech platform, Target manages assets of more than £17 billion, supporting clients in automating complex processing, servicing and administration of loans and investments.