Can you share with us the rationale behind your investment in Automated Arrears Prevention (AAP)?

The ongoing cost of living crisis, increased costs, and stretched resources has put a financial strain on social landlords and tenants alike. WDC had previously performed well in terms of arrears reduction, utilising Mobysoft’s RentSense platform to achieve, between July 2022 and June 2023, a 19% reduction in arrears (our lowest ever), a 10% reduction in average household arrears, and 139 households out of arrears and into credit over the past 12 months.
We wanted to improve further, however, and so partnered with Mobysoft to harness the AAP platform – an AI-based solution that flags those tenants who are likely to fall into arrears in the next three months and automates contact without officer involvement..

How did RentSense initially help WDC in managing arrears before the adoption of AAP?

RentSense provided us with a robust analytical tool that helped us identify arrears patterns and prioritise cases that needed immediate attention. This data-driven approach meant that our income maximisation officers could focus their efforts more effectively, resulting in a significant reduction in arrears. The platform’s ability to process and analyse vast amounts of data far exceeded our manual capabilities, which was crucial in achieving our arrears reduction goals.

What specific challenges did WDC face that prompted the integration of AAP?

Despite our success with RentSense, the increasing financial pressures on tenants meant that more proactive measures were necessary. We noticed that some tenants were slipping into arrears despite our best efforts. The challenge was to predict these cases early enough to prevent arrears from escalating. AAP addressed this by using advanced AI to forecast potential arrears cases and automating the initial contact process. This allowed us to intervene much earlier and offer support before the situation worsened for the tenants involved.  

Can you elaborate on how AAP works and its integration into your existing processes?

AAP is designed to seamlessly integrate with our existing RentSense platform. It uses AI to unobtrusively analyse transactional data and predict who might fall into arrears within the next three months. Once these tenants are identified, the platform automatically initiates contact through preferred communication channels, such as SMS or email, without the need for officer involvement. This automation ensures timely and consistent communication, allowing us to offer tenants support and guidance before their arrears situation becomes critical.

What impact has the AAP platform had on your arrears management and tenant support?

The impact has been profound. Since implementing AAP, we’ve seen a continued reduction in arrears and a notable decrease in the number of tenants falling into arrears. The automation of initial contact has freed up our officers to focus on more complex cases, improving overall efficiency. Furthermore, tenants appreciate the proactive support and timely reminders, which helps them manage their finances better. This proactive approach has also led to improved tenant relationships and satisfaction.

Could you share some specific results or metrics that highlight the success of this partnership?

Absolutely. Since integrating AAP with RentSense, we’ve seen remarkable results. For instance, we achieved our lowest ever arrears (equal to £997,000 – the first time these have ever been under £1m), as well as a 10% reduction in the average arrears value. Additionally, 1 in 5 tenants messaged by AAP made an immediate payment, demonstrating the effectiveness of early intervention. These outcomes not only highlight the success of the technology but also the positive impact on our tenants’ financial stability and well-being.

What feedback have you received from your income maximisation officers regarding the new system?

Our officers have been very positive about the new system. They particularly appreciate how the automated processes reduce their administrative burden, allowing them to spend more time on direct tenant engagement and support. The predictive analytics provided by AAP also help them feel more confident in their decision-making, knowing they are backed by reliable data and insights.

What are WDC’s future plans for leveraging technology in housing services?

We are committed to continuously improving our services through technology. Building on the success of RentSense and AAP, we plan to explore further innovations that can enhance tenant support and operational efficiency. This includes expanding our digital engagement strategies with the help of Mobysoft and its AI-powered platforms. Our ultimate goal is to ensure that we provide the best possible service to our tenants, helping them maintain stable tenancies and improving their overall quality of life.