100% Committed to Bank and Credit Union Collection and Recovery

Preemptive Collection Strategies

Addressing account issues prior to becoming problems is one of the most effective strategies in reducing delinquency. Coupled with robust loan collection and recovery software that facilitates compliance, preventive measures helps manage clients that are not past due yet carefully.

Start right at the beginning. By teaching clients about the significance of obtaining a loan, how the product works, and the benefits of paying on time and the imbursement schedule, while also providing information about the easiest method to make loan payments.

During the initial application process, the financial institution should request a number of pieces of information including the client’s full name, address and clear instructions on how to find the client, phone numbers (landline and mobile), email address and personal and commercial references.

After processing the loan, address customer-service complaints promptly before they result in a late payment. The lending institution can also recognize and reward clients who pay on time by offering them instant access to renewals, larger loan amounts, favored interest rates, certificates of good payment, and rewards.

CARM-Pro robust bank loan collection and recovery software helps banks and credit unions increase revenues and reduce costs through improvements in compliance, resource efficiency, and superior reporting.

Get the Facts

Ensuring quality information gathering and management about delinquent clients, loan circumstances and feedback about the credit cycle is vital for a successful debt gathering process.

To study loan-payment activities accurately, it is necessary for the financial institution to have an efficient information system to facilitate the monitoring of past-due clients and the production of comprehensible and defined reports.

Usually there are several types of reports:

The system should also preserve a history of actions taken and the various activities implemented. This is particularly essential when there are multiple debt gathering channels (loan officers, financial institution agents, call centers, campaigns, etc.). This ensures continuity and avoids duplication of efforts and contradictions.

Deploying best-of-breed collection automation workflows improves debtor records gathering and analysis.

Quality Information Helps

Just as regular client contact is a key to an effective collections process, so is the compilation of quality client information required for successful client location. This data needs confirmation and updating throughout the process in order to facilitate seamless contact with the client.

Financial institutions should also develop strategies for updating client information in the database, without compromising secure-access controls or quality of the information. One potential way to guarantee veracity of the information is through the development of an incentive system for staff to encourage timely and accurate database updates.

A past-due committee made up of staff, who participate in the process, including loan officers, agents, and branch managers, can talk about challenges and achievements, scrutinize specific past-due clients, strategies and processes, and portfolio statistics. A regular group meeting also helps to control delinquency, encourages good decision-making practices, and provides an important opportunity for learning and training from the field.

In addition to providing the right technology, IBS offers clients with ongoing and dependable training for your staffs. Our Online Self-Guided User Training Modules provides interactive training at no additional cost to support IBS clients.