Automated debt collection software fills the current need for most banks and credit unions dealing with debt collection issues. Customer payment default has become more common triggering an increase in personal, business owner, and company debts. Efforts for debt recovery have made credit unions and banks more vulnerable to scrutiny. Government regulations have led to automated debt collections. Automated software increases the capacity of collections for overdue debts and invoices while improving customer relationships with predictive analytics and automation tools.
Automated Debt Collection Management
This type of system uses new technology for debt collection to automate, streamline and customize most collection processes. Credit unions and banks leverage this technology to collect past due debts. Full automation eliminates most repetitive collection tasks. Steps required for collection are ensured, streamlined, and simplified with documented reports.
How Are Collections Increased with Automated Debt Collection?
Collections for credit unions and banks must be in compliance with strict state and federal regulations. Required actions can be enforced to increase collections through automation including:
- Preventing or performing recovery actions
- Maintaining detailed reports and documents
- Ensuring consistent compliance with internal and government banking systems
Debtor payments are automated to provide pay-now links by sending texts and SMS messages. Software programs make certain debt collectors are only communicating with client attorneys as opposed to the clients for those filing bankruptcy. Debt collection programs can effectively:
- Eliminate improper steps, documentation, and reports
- Notify clients in advance regarding payments due and billing
- Maintain client relationships with customized payment plans
- Enable regular reminders
The need for automated collection systems is increasing due to CFPB regulations for credit unions and banks.
Benefits of Automated Software for Debt Collection
Debtors can be provided with payment links through email or automated voicemails. Debt collection software is a data management solution and good business strategy ensuring technology can be leveraged to achieve the desired results. The additional benefits include:
- Decreasing costs
- Improved compliance
- Increasing account manageability
- Eliminating the risk of not complying with regulations
- Streamlining debt collector tasks to increase productivity
- Growth of financial institutions
- Simplifying training for temporary staff and new debt collectors
- Supporting collection procedures and policies
- Use of numerous collection channels
- Ensuring debtor payments are simpler
- Organizing and sequencing work
- Improving collector effectiveness and efficiency
- Assigning accounts and debt types
Features of Automated Collection Software
This software serves as an automated collection system capable of sorting debtor accounts according to risk, collectability, and contact ability. Collectors can run analytics and perform customer segmentation based on different scenarios. Financial institutions can assign collectors according to experience and skill. Automated debt collection combines accounts from multiple systems.
Collectors then gain a better understanding of the debtor relationship so they can influence their collection strategies. Information can be obtained from external sources to minimize manual research responsibilities. Communications can be integrated and interfaced with vendor resources while ensuring accuracy and eliminating human error.
The Difference Between Automated Debt Collection Software
There is a wide range of collection systems, advanced analytics, and artificial intelligence tools available. There are several reasons North American financial