According to the Bureau of Consumer Financial Protection 2019 Annual Report, outstanding credit card debt continues to grow, increasing to re-touch its 2008 peak of $870 billion. Additionally, the flow of 90 days or more delinquency for credit card balances remains elevated relative to previous years (BCFP).
Debt collection is a challenging process, for everyone involved. For the financial industry, in order to have a well-functioning bank or credit union, their lending strategy must include a well-thought out debt collection process. Various organizations have strategies and processes set in place to incentivize their teams to reach monthly quotas. Although a healthy amount of competition never hurt anyone, the underlining process should ultimately be to help members and customers get back on track and simultaneously be user-friendly for the bank and credit union staff.
While the ins and outs of your debt collection strategy should be tailored to your organization, there are several components that are vital to success and reproducible outcomes. Let’s examine 3 must-have components that are the basis of a fully functioning debt collection process.
1. Information Consolidation
How is the information that your staff is utilizing consolidated? Information consolidation from your core system is vital to having up to date and accurate information on the members and customers, to ensure that you are following all guidelines and regulations and communication effectively and timely. Ideally, your organization should utilize software that can integrate information from various sources, so it is readily available for your staff to use, reducing time verifying and researching.
2. User Experience
The user interface must be simple and easy to navigate. Having a simple-to-use system that will provide a user dashboard to each staff member outlining their daily targets and case list will help manage your team and analyze roadblocks in process. Additional user functionalities such an automated task lists for loan types and the ability to set up reminders ensure that your team is working efficiently, and your members and customers are receiving top drawer service.
3. Custom Queues
Custom queues will help your staff apply advanced filtering on their cases and allow for the application of their own unique processes. Additionally, they can triage cases based on specific criteria. Having the ability to search and segment cases through custom queues will also help your financial institution understand trends within your cases.
More Must-Have Components
With the same precision as MeridianLink’s best-in-class products for loan and account origination, web-based XpressCollect provides a robust, powerful, easy-to-use collection platform that maximizes efficiency and minimizes cost. Review the major features and benefits of XpressCollect collection software in one handy document, download our data sheet below.