Assessing Your Current Bank Collections System
A robust bank collection and recovery system should provide an open, compliant, and flexible framework for debt management, and feature customized payment options, a fully automated case management system, definable file import and export, report generators as well as a correspondence capabilities.
Does your current system make debt gathering easier by offering a supple, automated solution, embedded appropriate regulations, data interfacing with loan management and repayment system, rule-based queue management, work list definition for each collector, and case tracking? It should and could.
In addition, the system should offer Interface to core banking system, NPA classification, collateral management, rule and risk based allocation, automatic follow-up, delinquency guidance and task assignments to collectors, reappraisal and asset realization/foreclosure tracking, on-line facility for loan rearrangement, restructuring, and rescheduling capabilities.
Offering an up-to-date flexible system also provides ROI benefits such as productivity and cash flow increases
What capacity growth are you missing through inferior technology and work potential, and exposing your institution to unnecessary risk? Our robust collections software allows answering questions that need to complete the picture, not just the past due accounts, to calculate, to answer.
How fast a financial institution can modify the system when regulations change could be the difference in compliance and non-compliance.
Recent actions by government agencies point out how difficult it is to ensure compliance now and remain aware of future debt regulatory changes. Robust recovery software keeps organizations protected by remaining up-to-date with rules.
Adjustments in the political environment and increased security requirements drive legislative changes and industry regulations. The system must provide capabilities for accommodating current regulations and the flexibility to adjust to upcoming needs.
An example of what might be coming in terms of regulation came by way of Consumer Financial Protection Bureau (CFPB) recent examinations of consumer reporting, debt gathering, mortgage origination and servicing, fair lending, and student loan servicing.
How long has it been since your system received a vendor system update? Is your institution constantly frustrated at the lack of competent response from your vendor to your operational support challenges? Maybe it is time for a change. The leveraging of powerful and compliant up-to-date collection software, such as CARM-Pro, increases noninterest income even during times of regulation flux.
Staying Up-To-Speed with Channels and Regulation
The uses of text messaging and social media are two of the latest means used to collect.
Text messaging has exploded to where it is now the preferred method of communication for numerous Americans. Incorporating it with a bank collection and recovery software seems like a natural fit. However staying in a top of regulations could be complicated because consumer protection legislation does not specifically account for texting.
It was just a matter of time for debt collectors to start utilizing texting to communicate with debtors better. SMS is both less expensive and more effective.
According to Juniper Research, the mobile device owner reads 97% of text messages and 90% of those are looked in the first 4-6 minutes of delivery.
Skip tracing (aka debtor recovery) is the method of finding debtors that skipped town. Increasingly investigators use social networking sites such as Facebook, and Twitter to trace difficult to locate people. With a fast Google hunt and some ingenuity, it is possible to discover the subject's relatives, interests and likely whereabouts.
Social media has become such a deep-seated routine that even debtors on the run cannot resist the urge to participate.
For now, banks using skip trace methods involving social media need to assure at least that regulatory negligence does not reflect back to them. A financial institution’s risk management program should control the risks related to social media skip trace methods.
In addition to providing the right technology, IBS offers clients with ongoing and dependable training for your staffs. Our Online Self-Guided User Training Modules provides interactive training at no additional cost to support IBS clients.