Making Collections Easier for Debtors
Do you have an uncomplicated method for your debtor to make payment immediately? Tech-savvy consumers are seeking easy ways to make payments 24x7 using online and mobile devices. An adaptable collection and recovery software makes it effortless to offer compliant and flexible payment options.
Having a method for a debtor to make their late payment by phone, remote mobile payment or via a website could make a difference in the payee’s ability to recompense funds owed – and to the collection department’s to access those funds immediately.
Millennials, for example, are departing from tradition in some significant ways. Some of the choices they are making differ from than their parents and grandparents such as putting off buying a home or a car, or starting a family.
Millennials, who grew up digital expect speed and convenience, both online and mobile, more frequently for things such as payments.
A study by CCG Catalyst revealed that 25% of millennial want their savings and bills taken care of automatically. They want their bank or credit union digital with accessibility from mobile or online and integrated into their cars and home appliances.
This group uses digital banking to pay bills, send money, and make deposits. Half are either doing their banking via mobile devices or online.
We can help you add flexibility to your payments within our robust collections system. If the client owes the financial institution, CARM-Pro can accommodate that past due debt however, it is settled and help assure compliance.
More Ways to Pay
Dissimilar to previous generation, many of these new debtors require a more gentle touch. This is why less-intrusive contact methods, such as using digital and mobile communications, as well as 'pay now' telephone and self-service online payments, create more opportunities to collect.
Banks and credit unions are not the only firms that have to find new habits and expectations in dealing with this type of customer. Insurance firms, telecommunications providers, retailers, and even government agencies – to say nothing of the third-party collection agencies servicing these debts – have to acclimatize and discover new ways to communicate successfully with this new cohort.
Remote Bill Capture
Many financial institutions offer customers remote deposit capture, the capability to deposit checks through their mobile phones. Now new technology from companies such as Mitek allows customers to make a payment by simply taking a photo of a bill. This technology allows debtors to snap a picture of any bill, or invoice. It then extracts the image and the data for bill payment.
"What a consumer really wants to have in their hip, or their wallet, is a remote control to their finances, and the things that are popping up are remote deposit," Mark Schwanhausser, a senior analyst at Javelin Strategy and Research, said.
Mobile photo bill would be useful for those one-off payments or ad-hoc bills for debtors not already enrolled in online bill pay to settle their delinquency.
Staying up-to-date with available and new payment technologies also allows for another way for debtor to stay up to-date on their payments. Incorporating new technological advances allow customers to pay through online and mobile access.
However, financial institutions should establish controls and have appropriate policies and procedures in place to reflect the new payment crediting requirements.
In addition to providing the right technology, IBS offers clients with ongoing and dependable training for your staffs to assure compliance. Our Online Self-Guided User Training Modules provides interactive training at no additional cost to support IBS clients.