The Ways of Old and the Impact of New Technology
By: Paty Weinrich
If you're someone who's been in the banking or credit union collections world for some time now you've probably seen overwhelming changes. Let's look at the past 30 years. A collector in a bank or credit union 30 years ago probably had a hundred or less delinquent accounts to work. He or she came in each day, pulled their aging report, history filing cards and started manually dialing away. In the 90s, collections management software, predictive dialing, and electronic payments made their way on to the scene improving results and performance.
Today, with the growth in the availability of credit and an institution's expanded portfolio, collectors may find themselves with thousands of accounts to collect on. Accounts per collector have dramatically increased. Managing collections today is all about timing and consistency. The more customers/members you reach, the better your results. The need to accelerate the collection of your customers'/members' payments, while mitigating risk and navigating through the constant regulatory scrutiny is paramount for institutions today. Banks and credit unions continue to look for ways to increase efficiency, effectiveness, and customer loyalty, while continuing to implement stronger risk management collection practices due to the current economic climate.
Working in an environment that is so regulated hasn't been easy. Financial institutions all over the country are not only concerned about state and federal compliance issues but intense competitive pressures as well. Advancements in technology have led to new ways of doing business for banks and credit unions within their collections and asset recovery departments.
Staying Competitive with New Technology
Robust collections management software now has the functionality to provide workflow automation efficiency that eliminates repetitive manual processes and minimizes errors. Improved reliability and reporting of timely data is now available, along with the ability to combine existing and real-time information of a customer/member. Automating the collection process has become essential for optimizing the recovery of all income streams, including all activities required for the recovery of special assets and financial institutions must facilitate and efficiently manage all charge offs.
With today's advancement in technology, the installation of collections management software offers banks and credit unions the ability to increase efficiency, increase productivity while reducing delinquencies and ensure compliance with all collections regulations. Collections management software offers a scalable, reliable, error-free combination of functions that provides the assurance a financial institution needs to be competitive and on the leading edge of technology.