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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 process automation solution to improve their collection and recovery efforts. 

Automated Debt Collection Software

The rise of credit use by companies and personal debtors during the 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 more vulnerable to higher compliance scrutiny. This exposure is compelling bank and credit union debt collection professionals to automate debt collections as a proven way to improve their debt management systems, while economically increasing their collection capacity.

What is Automated Debt Collection?

Automated Debt Collection 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 of 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, the productivity of debt collection automation enhances debt collector efficiency by:

Automated Debt Collection

Debt Collection Automation Increases Collections and Maintains Bank Compliance

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.

Debt collection automation software maintains debt collections compliance by:

Only automated debt collection calls 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.

Banks and credit unions can leverage automated collections software to:

CARM-Pro™ – Collections and Recovery Manager Professional by Intelligent Banking Solutions™ enables bankers to automate debt collections far better than less sophisticated systems 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™.

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

Benefits of Automated Debt Collection Software

Debt collection automation software is much more than a data management solution for financial institutions.  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.

Collections Automation with Debt Collection Software Enables Banks and Credit Unions To:

Automated Collections Software Scores Debtor Features for Debt Collectors

Benefits of Contemporary Systems That Automate Debt Collections

These 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:

Not All Automated Debt Collection Software is Equal

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

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

Additionally, unlike agents with typical 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 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.

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

CARM-Pro™ Fully Automated Work Flows