Housing corporations can prevent evictions and prepare for ESG with our tools

Digitizing the payment process

Dennis starts by explaining the founding of POM. "In 2010, I worked at a large European debt collection agency. Among our clients were large housing corporations. My direct colleagues and I noticed a need to simplify our job and wondered if we could digitize the process. Two of my colleagues decided to take the leap and start a new company called Mail to Pay, now POM. They were the first to introduce digital payments by email with a payment link. At the time, this was groundbreaking. Now, it's widely accepted."

Market leader

Dennis: "In no time, the company conquered the Dutch market. More than half of Dutch housing corporations use POM's tools today. We send over 3.5 million payment requests monthly and collect over €400 million for their clients. POM is the market leader in the Netherlands and Belgium and is expanding to Germany." 

Social credit management

Seven years ago, Dennis decided to join POM because he was unhappy with the consequences of conventional debt collection. "I experienced first-hand what conventional debt collection did to people. I couldn't justify working at a company that put people further in debt by sending bailiffs. At the time, I saw things were different at POM, even when the company hadn't fully transitioned to what it is today." 

Dennis explains how the founders of POM noticed that their tool significantly impacted people's payment behavior and started steering the company towards a new, innovative type of credit management: social credit management. This type of credit management ensures debt collection agencies and bailiffs stay out of the picture and prevents evictions. He elucidates its importance for housing corporations and how it can help them and their tenants.

Accelerate payment process

Dennis explains how POM works. "POM enables housing corporations to send tenants white-label, intelligent, and polite messages with an easy payment option. Tenants can pay the invoice quickly and easily, either with their mobile phone or not. As a result, tenants pay the rent invoice 40% to 60% faster, especially when using multiple channels. Tenants pay three times faster via email than by post and 5.5 times faster via SMS than by post." 

Adjusting tone of voice to match payment behavior

Unlike other companies, POM adjusts the communication in the payment process to the tenant's payment behavior. "There's a great variety in the payment behavior of tenants; we tune the message in on their behavior. For example, some tenants consistently pay the rent at the last reminder, while others accidentally forget it because they put the envelope out of sight or opened it too late. We address each group in a tone that matches their payment habits", says Dennis. 

"The group that can't afford the rent due to money problems requires an entirely different, customized approach. They need the time and attention of the housing corporation, which corporations don't have without our tools." That's where POM distinguishes itself from conventional credit management. "POM is much more progressive in that regard, making it more relevant for corporations," says Dennis."

Conventional vs. social credit management

He explains the difference. "In conventional credit management, people who don't pay on time must pay additional costs. If they fail to pay the second demand letter, a bailiff gets involved, which can lead to eviction. At POM, we utilize friendlier options that prevent their most vulnerable tenants from getting deeper into financial problems and eviction from their homes." Dennis speaks from experience. In addition to working for POM, he also works for a foundation called ONSbank, which helps young people with financial problems.

Deeper in debt due to adding costs

"I am certain that the young people I help through the foundation have gotten deeper in debt due to conventional credit management. I am just as sure that the parties those young people have debts with don't use our software", says Dennis. "Conventional credit management pushes tenants with financial problems deeper in debt because they can't afford the rent. Adding to their financial load with additional costs makes it even worse," he says.

"That's the last thing housing corporations want", he explains. "Often corporations can find a solution with the tenants and make agreements when they talk to them. But they don't have time for a customized approach without digitizing the payment process. Corporations have free hands with our tools to engage with that group, as the rest of the work is automated. Housing associations see this as one of our software's biggest advantages."

ESG and debt collection policy

Reconsidering their debt collection policy is becoming more urgent for corporations with ESG on the horizon. Dennis explains how their tools can help prepare for the Social component in ESG regulations (CSRD). "Under the 'Social' chapter is a section on product responsibility. For housing associations, this means that they must handle their debt collection policy responsibly. They must protect their tenants and ensure they avoid falling deeper into financial problems due to poor policies. If housing associations cannot meet future standards, this may attract the attention of regulators and result in reputational damage."

Wait or prepare for ESG

"Housing corporations can choose between two options", Dennis concludes. "Do you choose to wait, continue with conventional credit management and do nothing? Or do you choose the social, progressive route that helps your most vulnerable tenants, accelerates the payment process, and prepares you for ESG legislation?"

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