Traditional debt collection - from established processes to digital opportunities

Learn how modern, digital debt collection can complement traditional debt collection and provide faster, cheaper and more efficient collection processes.

What is traditional debt collection? 

Traditional debt collection is a well-established method of debt collection in Norway. The main function of debt collection companies is to ensure that outstanding claims are paid. The scheme is well-established in the legislation, with clear frameworks for process, deadlines and fee levels. This provides a system that is structured and predictable: The creditor receives assistance in collection, the debtor receives a standardized process to deal with, and the state ensures balance between the parties. 

At the same time, technological developments open up new ways of implementing collection processes, which can result in both increased efficiency and lower costs. 

Institutional frameworks and path dependency 

Economist and Nobel laureate Douglass North described institutional economics as a set of formal laws and informal norms – rules of the game that influence how we organize society. Once a system is established, “path dependency” often arises: historical choices that cause us to continue with established methods, even when new opportunities arise. 

Debt collection is a good example of this. The regulations were developed at a time when the process was more paper-based and manual. Today, many of the steps can be performed digitally and more efficiently, opening up new ways to organize and execute debt collection. 

Predictability in the market and potential for efficiency improvements 

Today's debt collection model is governed by fixed rates and established fee structures, which provides predictability. At the same time, it means that changes often occur gradually. With the rise of digital debt collection solutions and automated processes, there is significant potential to: 

• Simplify collection 

• Reduce costs for both the creditor and the debtor 

• Create faster and more efficient processes 

Socioeconomic benefits of digitalization 

From a socio-economic perspective, parts of today's debt collection processes may be more resource-intensive than necessary. Digitalization and automation can free up labor and capital, while reducing costs for both parties. This opens up the possibility of solutions with higher efficiency and value creation – and which can be implemented within current regulations. 

Digital debt collection as a supplement to traditional debt collection 

Traditional debt collection dates back to a time when needs and technology were different. With Kapitalkontroll's digital debt collection, you get full control over your collection, lower fees and faster settlement – without unnecessary intermediaries.  

Do you want to take control of outstanding claims?
Talk to us about how debt collection and smart technology can strengthen your liquidity.