AI-based debt collection for
energy providers.

Digital debt collection at PAIR Finance relies primarily on AI-based, personalised digital processes, in contrast to traditional methods that use mainly postal letters or outbound calls. Modern, mobile channels such as email, SMS or messenger services (e.g. WhatsApp) are at the forefront. Consumers are reached at the optimal time and with individually tailored communication. This mobile-first approach enables outstanding debts to be settled conveniently and from anywhere – a clear advantage for increasingly digital consumers.

PAIR Finance uses behavioural research and data science to better understand payment behaviour and tailor communication accordingly. Advanced AI technologies such as reinforcement learning and generative AI allow the approach to be continuously optimised and adapted to each consumer’s situation. This results in empathetic, solution-oriented interactions that not only lead to faster payments but also strengthen customer satisfaction and the energy provider’s brand reputation.

Experience shows that digital collection processes like those of PAIR Finance achieve much faster responses: a significant proportion of consumers settle outstanding debts within hours of first contact. Companies also benefit from higher efficiency and less strain on their own customer service. Digital, empathetic debt collection enables companies to recover outstanding revenue without jeopardising customer relationships, redefining the collection experience for energy providers and their customers.

PAIR Finance is a reliable partner for the entire energy sector, regardless of company size or business model. Our solution supports both basic and non-basic suppliers and is suitable for final and ongoing contracts. We understand the specifics of the industry: although we focus on a mobile-first solution, only a small proportion of energy consumers often provide an email address or are regularly reachable by email. Therefore, in addition to digital channels, we continue to use traditional postal communication to reliably reach all customer groups. PAIR Finance addresses the needs and communication habits of consumers individually – whether digitally savvy or preferring post. This ensures that every claim is handled efficiently and customer-oriented, regardless of target group or contract type.

Digital collection processes for energy providers at PAIR Finance follow a clearly customer-oriented, technology-driven approach:

Digital Communication:
In addition to paper-based collection letters, outstanding debts are communicated via email, SMS or WhatsApp. PAIR Finance’s AI analyses consumer behaviour and adjusts both the channel and frequency of contact – only as often as necessary and always at the optimal time.

Flexible Payment Options:
Consumers receive a link to a digital payment portal directly with the message. There, they can choose from various payment methods, enabling convenient settlement of outstanding debts anytime, anywhere.

Personalised Approach:
Communication is individually tailored to the preferences and needs of consumers using behavioural analysis and data science, increasing willingness to pay and preserving the customer relationship.

Process Steps:
The digital collection process covers all stages – from out-of-court dunning to legal and post-legal steps. The aim is to achieve an out-of-court, customer-friendly solution as early as possible.

PAIR Finance offers energy providers a fully digital, efficient and customer-oriented collection management system that, through smart technology, flexible payment methods and personalised communication, significantly increases recovery rates and makes the process as easy as possible for consumers.

The key features that define “digital debt collection” for energy providers at PAIR Finance are:

- Automation and Speed:
Digital collection enables a fast, automated receivables process. Communication with defaulting consumers takes place in real time via digital channels and is more efficient than traditional methods.

- AI-based Communication:
PAIR Finance uses artificial intelligence to analyse payment behaviour and tailor communication – for example, by selecting the right channel and optimal timing.

- Digital Communication Channels:
Messages and reminders are sent not only by post but also via email, SMS, WhatsApp and customer portals, increasing reach and making interaction easier for all customer groups.

- Self-Service Options:
Consumers can make payments online, arrange instalment plans or ask questions – all digitally and without media disruption.

- Transparency and Reporting:
Energy providers have access to all outstanding claims, current status and can create individual reports via a client portal at any time.

- Data Security and Compliance:
PAIR Finance ensures that all processes comply with applicable data protection regulations and legal requirements.

- Customer Focus and Fairness:
The entire process is designed to maintain the relationship with consumers and enable the simplest, most respectful solution possible.

At the core is data-driven outbound communication: a proprietary AI algorithm analyses payment behaviour and selects the optimal communication channel, timing, tone and payment options for each individual. This results in over 30,000 possible communication variants, used specifically to increase willingness to pay without straining the customer relationship. The selection of channel, timing and approach is fully automated. The result: consumers are addressed personally, efficiently and respectfully, which is directly reflected in higher resolution rates and increased customer satisfaction.

For inbound communication, PAIR Finance uses agentic AI. Instead of standard models, Meta’s Llama 3 has been trained with millions of anonymised consumer queries specifically for the debt collection industry. This enables the AI to understand industry-specific contexts and handle even complex requests such as changes to instalment plans automatically. Around 80% of incoming queries are technically classified and a decision is made as to whether machine or human processing is required. Already, about 40% of consumer queries are fully resolved by AI.

In addition, AI-based segmentation of different customer types enables tailored, customer-oriented solutions even in difficult cases. Communication remains respectful and flexible, further increasing willingness to pay and sustainable customer retention.

By combining data-driven personalisation, automation and intelligent process control, PAIR Finance significantly increases recovery rates in receivables management for energy providers, with maximum efficiency and the highest customer satisfaction.

PAIR Finance offers energy providers a smooth and flexible integration into existing system landscapes. Implementation includes the following steps:

1. Selection of the appropriate integration solution:
PAIR Finance supports various technical connection methods – including real-time integration via REST API, secure data exchange via SFTP/FTPS server or transfer of receivables files as .csv. Integration via partner systems is also possible.

2. Technical setup and connection:
The chosen integration method is set up together with your IT team. PAIR Finance provides comprehensive technical documentation and personal support to ensure a quick and secure connection.

3. Data transfer and validation:
Consumer files and receivables data are transferred via the interface. Data validation is automated to ensure error-free and efficient processing.

4. Real-time reporting and monitoring:
After integration, energy providers have access to the PAIR Finance client portal, where all relevant information on outstanding claims, payments and communication status is available in real time. Export functions enable individual reporting and analysis.

5. Ongoing support and process optimisation:
PAIR Finance provides continuous support for technical and process-related questions. The platform is regularly developed further so that energy companies always benefit from the latest features and optimisations.

With PAIR Finance, energy providers benefit from fast, secure and convenient integration as well as transparent real-time reporting. This saves valuable time and resources in receivables management and ensures a clear overview of all relevant processes at all times.

Energy providers who commission debt collection service providers must observe a variety of regulatory requirements. The General Data Protection Regulation (GDPR) forms the central basis: debt collection companies are considered controllers for the processing of personal data and are obliged to implement technical and organisational measures (TOMs) in line with the latest technology.

PAIR Finance stands out with a comprehensive data protection concept. This includes transparent information obligations towards consumers, regular staff training, internal audits and clear deletion and retention concepts.

ISO 27001 certification is an important proof of a systematic information security management system (ISMS): it confirms that the service provider regularly conducts risk analyses, continuously develops established security measures, maintains emergency and recovery plans and thus ensures a high level of data security. For energy providers, this means reduced liability risks and increased consumer trust.

With the new EU AI Act, further requirements arise when artificial intelligence is used in the collection process. These include, in particular, transparency obligations in dealing with AI and special training for employees to ensure responsible and secure use of AI.
For more details on compliance, data protection and AI in debt collection, see the article “Compliance in Debt Collection: Data Protection, AI and Regulatory Requirements in Focus”.