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Automated Debt Collection Software

This automated debt collection software article explores the features and benefits for banks and credit unions. It provides key information for bank and credit union debt collectors seeking a collections process automation solution to improve their collection efforts to reduce bad debt and optimize cash flow. 

Automated Debt Collection Software

How Bank Customers’ Rising Payment Default Impacts the Collections Industry

The rise of credit use by companies, business owners and personal debtors prompted by the COVID-19 pandemic has increased customer payment default. The market surge of required debt recovery efforts in current economic and political conditions makes banks and credit unions vulnerable to higher compliance scrutiny. This exposure to government regulations is compelling bank and credit union debt collection professionals to automate debt collection operations.

More than ever, bankers are using proven automated debt collection technology such as CARM-Pro™ Collection and Recovery Manager – Professional by Intelligent Banking Solutions™.

Automating Debt Collection Practices with CARM-Pro Enables a Collections Team to:

What is an Automated Debt Collection Management System?

An automated debt collection management system uses debt collection technology to reliably customize, streamline and automate many collection process activities. Debt collection automation software programs are leveraged by bank and credit union agents responsible for collecting any past due debt owed their financial institution.   

Many required and repetitive tasks of the collection process can be fully automated with a powerful automated debt collection system, while some actions require human intervention.  

For example, automated debt collection and analytics tools support critical financial processes and collector business decisions by:

Automated Debt Collection

How Banks are Using Debt Collection Automation To Increase Collections

Maintaining debt collection compliance requires that bank and credit union collections agents must abide by strict – and often conflicting – federal and state regulations.   Automation of this process is the most proven way for financial institutions to consistently enforce required debt recovery actions.

Compliance Features of CARM-Pro Debt Collection Automation Software Can Help Collection Departments to:

Only automated debt collection management software can ensure consistent compliance with FDCPA , TCPA and other government and internal banking system policies and procedures.

SMS Collections
Automate debtor payments by providing pay-now links via SMS/text.

For example, CARM-Pro™ automating debtor management software programs ensure that debt collectors only communicate with fully automated communications through the attorney of a client who filed bankruptcy, and not directly with the debtor.

Bank and credit union collection agents can leverage the CARM-Pro automated debt collections platform to:

CARM-Pro™ – Collections and Recovery Manager Professional by Intelligent Banking Solutions™ enables bankers to automate debt collections far better than less sophisticated debt collection platforms that cannot manage this level of debtor contact. 

The shift in U.S. national leadership and its corresponding political landscape is prompting expectations of increased banking industry regulation, including more stringent Consumer Financial Protection Bureau (CFPB) compliance enforcement.  

As part of compliance enforcement on a number of consumer financial markets, the CFPB has historically levied billions in fines and penalties – largely on bank and credit union debt collectors – for CFPB violations.

The anticipated sharp increase in CFPB regulation of bank and credit union debt collectors amplifies the need for an automated debt collection system such as CARM-Pro™ Collections and Recovery Manager – Professional by Intelligent Banking Solutions™.

From strategy to delivery, CARM-Pro provides the best solution in the debt collection software market.

Automated Email Collection
Automate debtor payments by providing pay-now links via email.

Benefits of an Automated Debt Collection Software Solution

Debt collection automation software is much more than a data management solution for financial institutions.  The technological advancement of automating debtor management is a wise business strategy that leverages technology to achieve desired end results.  

Automated Voicemail Collections
Automate recorded voicemails for debtors.

The opportunity is to balance the benefits of automation with factors that enhance human ability. This balance enables all users – from agents to customer debtors – to benefit from the efficiency of collection process tools and technology for everything from billing to invoices to payments.

How Banks and Credit Unions Can Benefit from Using CARM-Pro™ Automated Debt Collection Software:

Automated Collections Software Scores Debtor Features for Debt Collectors

Benefits of Contemporary Systems That Automate Debt Collections

The benefits of a modern automated debt collectionsystem such as CARM-Pro™ Collection and Recovery Manager – Professional by Intelligent Banking Solutions™ can save bank debt collections professionals vast amounts of incremental time and expense as they strategize and work multiple debt accounts.

Debt Collection Strategies that CARM-Pro Collection Management Software Tool Supports:

Not All Automated Debt Collection Software is Equal

Past due debt recovery is not unique to the banking industry. A variety of collection systems, artificial intelligence tools, and advanced analytics exist across several industries, and for various related collection activities.

What is unique to the debt collection industry – and bank debt collecting in North America in particular – is the growth of key factors such as regulatory scrutiny of critical documents and business processes; overall debt size; and the number of debts a debtor has with a financial institution.  

Additionally, unlike agents with typical debt collection agencies, banks and credit union debt collectors seek maintain long term relationships with customers and members.  For example, bankers collecting on their own debt are very different from people in collection agencies who collect on the debts of other organizations.  

Financial institutions can benefit most from automated debt collection software built specifically to support their unique needs for debt collection process automation.  Software developed by industry experts dedicated to simplifying the installation process, and maintaining a supportive ongoing vendor relationship.

Some collection systems are built for a specific debt types, such as credit cards, negative balance deposits, mortgages, and indirect loans. For these types of loans, the optimal solution is not typically full debt collection automation.

Some collection systems are a small component of a larger suite of financial service product offerings. For example, a company may have one or two large central products for banking, plus multiple medium-size products, and hundreds of small products – including a small collection software system.  The research and development, support, and service that this type of firm can devote to its small debt collection product typically lacks depth and sustainability, results for a client bank or credit union.

Some financial institutions in North America use specialty servicing platforms for specific types of lending such as mortgage lending, commercial lending, consumer lending, and credit cards.  It is vitally important that banks and credit unions use a debt collection system that is adept at consolidating all of a debtor’s disparate account information into a full 360-degree view of each debtor’s outstanding debt.

Features of CARM-Pro™ Automated Debt Collection Technology

Proactive professional bankers value CARM-Pro™ as an automated debt recovery system that delivers comprehensive solutions to the challenges of debt management and collection strategy enforcement.  

CARM-Pro™ Collection and Recovery Manager – Professional by Intelligent Banking Solutions™ seamlessly integrates with all core banking systems.  In contrast to the basic collection module native to core banking system software, the benefits of proven CARM-Pro™ collections automation technology far outweigh the costs.

CARM-Pro™ technology is a single-focus banking software solution that empowers users to increase account capacity by automating tasks to recover more money in less time with fewer people. It also enables bankers to lower their threshold and grant loans to customers with a weaker credit history.

This robust cloud-based or on-site debt management tool is built, maintained, marketed, and serviced by privately-owned, U.S.-based Intelligent Banking Solutions™.

Key Features of CARM-Pro™ Automated Recovery Systems Technology

Each key feature outlined below is an example of how single-platform CARM-Pro™ enables bankers to efficiently collect on overdue invoices and improve client engagement.

CARM-Pro’s Multiple Communication Channels Enhance Customer Service to Bank Clients

How CARM-Pro™ Fully Automated Work Flows Improve Receivable Management

CARM-Pro™ data can be updated from external, non-core sources (skip trace, collateral appraisals, and third-party services such as attorneys, appraisers, and other collection resources)

Fully automated CARM-Pro work flows also:

Frequently Asked Questions

Automated Debt Collection Software

Debt collection software enables collection agents at community banks and credit unions to recover more debt with higher compliance in less time, with lower investment in FTE employees. It also enables financial institutions to reassign employees to revenue-generating tasks such as recovery of charged off debt. In addition to many other benefits, automated debt collection software such as CARM-Pro™ Collection and Recovery Manager – Professional by Intelligent Banking Solutions enables collection departments to double or triple the client account capacity of current or fewer employees.

A bank or credit union that collects on its own loan is a “first-party” debt collector, while a third-party collection agency is an outside collection business that has either been hired by the loan originator to collect payment on its behalf, or has purchased the loan (debt) from a bank or credit union, to collect it.

An automated debt collection software system such as CARM-Pro™ Collection and Recovery Manager – Professional enables bank and credit union professionals to recover more debt in less time, while maintaining compliance with government regulations. CARM-Pro’s powerful risk-mitigating automated collection management system also supports lenders’ ability to grow bank loan portfolios by pursuing higher-risk borrowers with lower credit scores. CARM-Pro’s custom configurations are tuned to meet an institutions specific collection process, while its work flows enforce compliance while streamlining the total process. CARM-Pro’s comprehensive system of user-friendly, intuitive, and customizable automated tools also promote excellent bank customer service and eliminate outdated processes such as aggressive calls to debtors.