TrueAccord has announced that it has raised $22 million in funding to help the company grow and expand its technology-driven debt collection platform. The money will be spent in the areas of product development, enhancing its compliance and auditing functionality, and expanding into new markets.
The company uses consumer behavior to drive interactions and communications. Based on how consumers interact with emails, calls to a contact center, or other communications, TreuAccord’s technology develops customized communications and payment options a successful arrangement is reached.
TrueAccord is led by Ohad Samet, who was recently named to the Consumer Financial Protection Bureau’s Consumer Advisory Board. The company recently hired Tim Collins to be its chief compliance officer.
Arbor Ventures Fund was the lead investor in this round of financing, with additional capital being provided by Abhor, Nyca Investment Partnership, Assurant Growth Investing, Caffeinated Capital Fund, Felicis Venture, TenOneTen and Crystal Towers, according to information provided by TrueAccord.
The company has touted its growth among creditors and consumers in recent years and says that more than $1.5 billion of debt has flowed through its system. More than 2 million customers are currently using TrueAccord’s platform, the company said in a statement announcing the investment. TrueAccord claims its technology allows it to beat the collection rates at traditional agencies by between 50% and 500%.
“It was the personal experience of dealing with a debt collector that made me realize the traditional collections industry was ripe for disruption with technology innovation and a more human approach,” said Ohad Samet, Chief Executive Officer of TrueAccord. “With changing consumer preferences, strong regulatory support for innovation, and clients who understand a customer-focused collection process is good for their business, we’re experiencing tremendous demand from the market. We are seizing this opportunity to use machine learning to humanize debt collection for good.”
