The Evolution of Credit Management

Debt Through the Ages

For as long as people have lent money or goods of value, there has been a need to have it repaid.The first known debt transactions trace back to Mesopotamia (≈ 3 500 BC), when farmers borrowed supplies from traders or officials. Those unable to repay lost farms, livestock, and even family members to servitude—upheavals that eventually prompted Babylonian kings to proclaim debt amnesties.

“Freedom,” or amargi in Sumerian, literally meant “return to mother”—because children held as debt slaves were released home. (Wikimedia Commons)

From Ancient Laws to Modern Regulation

Throughout history, debt has sparked wars, revolts, and reforms. Balancing creditor rights with debtor protection remains a delicate task. To curb exploitation and promote fairness, modern law now governs nearly every aspect of credit and collection:

• Prescription Act (1969): Maintain regular contact with the debtor.
• National Credit Act (1996): Lend only when affordability is proven.
• POPI Act (2013): Safeguard client information.
• Debt Collectors Act (1998): Enforce professionalism and ethics.

The Time-Based Model

Traditionally, debt collection followed a time-based recovery cycle—accounts advanced through fixed phases as months passed. But analytics, behavioural change, and legislation have exposed flaws:

• Debtors can claim prescription after three years of no contact.
• Judgments last 30 years but disappear from credit files after five.
• Propensity to pay usually declines as debts age.
• Dormant accounts lead to restarts, lost data, and higher prescription risk.

The Analytical Future

The rise of predictive analytics and data-driven credit management has transformed recovery strategy. Past behaviour predicts future behaviour: debtor profiles now forecast response channels, timing, and likelihood to pay.

• Identify whether a debtor will respond to a call, letter, or legal notice.
• Deploy the right strategy early, reducing cost and improving outcomes.

Technology and Transformation

Credit management is evolving fast.

• Voice analytics monitors 100% of calls for compliance and quality.
• Chatbots enable automated, intelligent conversations.
• Consumers increasingly prefer digital self-service over branch visits.

“It doesn’t matter where you are coming from; it matters where you are going.” — Brian Tracy

The Nimble Approach

Nimble is embracing this new era with sophisticated IT infrastructure and world-class analytical tools, delivering affordable, sustainable debt-resolution solutions across Africa.

Written by Fawz Khan – Business Development Manager