100% Committed to Bank and Credit Union Collection and Recovery

Automated Debt Collection Software

This automated debt collection software article explores loan recovery features and benefits for bank and credit union professionals. It provides information and ways for bank and credit union debt collectors to access a collections process automation solution to improve their collection efforts. This solution optimizes cash flow, increases lending to low credit score customers, and reduces bad debt.

Automated Debt Collection Software

How Bank Customers’ Rising Payment Default Impacts the Collections Industry

Customer payment default has increased due to rising credit use by companies, business owners and personal debtors prompted by the COVID-19 pandemic. The market surge situation of no option debt recovery requirements makes bank and credit union lenders vulnerable to more compliance scrutiny in current economic and political conditions. More loan amount growth and lender exposure to state and federal regulations is compelling bank and credit union debt collection professionals to automate debt collection operations.

More than ever, lenders’ needs include access to 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. Some actions, however, require human intervention.  

For example, key ways that collector business decision requirements and critical financial processes are supported by automated debt collection and analytics tools include:

Automated Debt Collection

How Banks are Using Debt Collection Automation To Increase Collections

State and federal regulations require that bank and credit union collectors must maintain debt collection compliance and must abide by strict – and often conflicting – rules.   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:

  1. Eliminate the risks of improper or missed steps, reports and documentation
  2. Proactively pre-notify customers according to client communication preferences about billing of payments due, to increase money collection
  3. Maintain relationship states with clients by creating custom payment plans and training debtors to pay your financial institution’s debt first via automated collection enhancement and compliance tools. CARM-Pro’s advanced features enable regular payment reminders; prompt recognition for honoring payment; and consistent reinforcement of the bank’s intention to follow through on debt recovery.

CARM-Pro™ – Collections and Recovery Manager Professional by Intelligent Banking Solutions™ enables loan officers to automate debt collections and bank account details 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 for CFPB violations. Bank and credit union debt collectors bear the largest share of these penalties.

The 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 and service, CARM-Pro is 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 and options for 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 customers – 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 collection system 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 expenses as they strategize and work each debt account.

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 fee payment 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 products developed by industry experts dedicated to simplifying the installation process, and maintaining a supportive ongoing vendor relationship.

Specific debt types, such as credit cards, negative balance deposits, home mortgage options, and indirect loans require collection systems. For these cases 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, service and support that this type of firm devotes to its small debt collection product typically lacks depth and cannot process sustainable results for a client bank or credit union.

Some financial institutions in North America use specialty servicing platforms for specific types of lending.  Funds loaned in these cases include mortgage lending, credit cards, commercial lending, and consumer lending. It is vitally important that banks and credit unions consolidate all borrowers’ disparate account and fee information using a debt collection system that is adept at creating 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 a comprehensive solution to the challenges of debt management and collection strategy enforcement.

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 credit score threshold terms and grant payday loans to customers with a weaker credit history.

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 bankers can collect overdue invoices, payday loan with interest, and improve client engagement with single-platform CARM-Pro™.

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 any form of 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

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 and fees 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. It does this by pursuing higher-risk borrowers with lower credit scores. These people become longer term customers with high interest rate cash advance products. CARM-Pro’s custom configurations are tuned to meet an institution’s 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.

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.

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.