Improving Bank Collections
Retail banks are under enormous pressure to improve efficiencies, reduce costs and stay compliant. However, while the banking industry has experienced significant technological change, the collection and recovery functions at many financial institutions still rely on obsolete and inefficient practices that make it difficult to improve retrievals of debts – instead of vigorous software that is available today.
Collections and recovery has changed. In the past, a phone call was sufficient to collect. Now, clients have multiple debt obligations. They also generate more data than ever that affects the risk on a bank’s books.
Those financial institutions need specialized, robust software capable of coping with tough markets, challenging competition and increasing regulatory pressures. These dedicated solutions provide unmatched acumen into risks and customers in addition to facilitating the gathering of more revenue from existing credit responsibility.
The challenge is to implement reliable software that supports best practices in the overall process.
Recovery functions should not exist in isolation. They should be part of a seamless data flow within banks to avoid data inconsistencies and needless impediments that erode effectiveness. This capacity helps financial institutions obtain the most value from the debt recovery process.
For a multifaceted procedure to operate correctly, data must flow effortlessly across units in the recovery chain. However, some current bank and credit union operations do not ensure smooth data flows.
Embedding advanced analytics in recovery solutions also helps deliver various paybacks. Financial institutions can evaluate customer behavior, recognize clients presently inhibited from making payments, and help establish the correct recovery strategy.
Automation and robust real-time capabilities diminish data loss, speed up the recovery process and improve productivity. These solutions help financial institutions comply with stringent federal and evolving state regulations.
Portfolio reports with collections software allows answering questions that need to complete the picture, not just the past due accounts, to calculate, to answer.
Best practices guides are the best way for banking groups to manage bad debt and gathering and recovery activities across subsidiaries.
A framework of best practices should include a system to execute this framework; a structured methodology for implementation; and rules to automate the monitoring of accounts under recovery.
A continuous automated recovery process built on top of a workflow process can simplify the recoveries method. Automating a workflow with pre-configured rules reduces the manual effort involved in prioritizing workloads and contact channels.
The workflow process must be flexible and scalable to accommodate future requirements. Financial institutions can produce elevated recovery rates from improved data flows, and the integration and availability of analytics.
They also present opportunities to improve the debt gathering process and create new efficiencies.
Our Online Self-Guided User Training Modules provides interactive training, to ensure consistent and compliant representation approaches, at no additional cost to support IBS clients, allowing platform users to take the online classes based on their availability.