By Zack Devin
Automated debt collection software is a process automation solution that helps banks and credit unions increase collections and recoveries. Banks, in particular, are subject to strict regulations on their collection practices. Automated debt collection software provides many benefits for banks and credit unions including:
- Greater accuracy of automated data entry (eliminates manual errors)
- Reduced cost per contact (lower labor costs)
- Increased productivity of collectors through the use of an automated system rather than phone calls or emails.
What is automated debt collection software and how does it work for banks and credit unions?
Banks and credit unions struggle with debt collection. The automated debt collection software helps banks and credit unions increase collections.
An automated process solution, the software drives increased revenue for banks and credit unions by delivering greater accuracy of data entry, lower cost per contact through labor savings, and improved productivity of collectors through use of a system rather than phone calls or emails.
Automated debt collection software delivers these benefits in two ways:
- Automating manual processes which eliminates errors that can happen when humans are involved
- Providing an easy to use interface for collectors so they spend less time on work related activities like emailing people who owe money back about their account is delinquent or updating customer records with new information. Automation completes these tasks, freeing up time for collectors to generate new revenue.
Automated collection software helps banks and credit unions comply with the many regulations that are part of banking compliance like FACTA, FCRA (Fair Credit Reporting Act), HIPAA (Health Insurance Portability and Accountability Act). These laws require credit bureaus or lending institutions provide customers access to their data after a certain period of non-payment on an account. Automation allows you to maintain this requirement by providing consumers access in real-time through a web portal.
The automated debt collection system also includes features designed specifically for those who work in collections:
- The ability to set reminders so collectors can follow up when it is most beneficial
- Notification alerts sent automatically when accounts are delinquent or past due
- Customizable reports to show the team’s progress
- Web portal that can be accessed by collectors, clients and consumers
- Uploads of documents are possible through this web portal – meaning there is less work on collection agents.
How automated debt collection software can help your bank or credit union grow
Automated debt collection helps banks and credit unions grow their business. It automates an otherwise tedious, time-consuming process and helps them stay compliant with regulations like the FDCPA (Fair Debt Collection Practices Act). Automated debt collection software also increases collections efforts which is good for your bottom line.
The automated system can be accessed through a web portal or by phone giving you access to up-to-date information at all times – even if it’s not on your desk! This way you know exactly what needs to be done next so there are no surprises when opening the computer in the morning.
It doesn’t matter if you’re one person or 100 people: automated debt collection will save time, money and make everyone more productive while improving their bottom line.
Why should you choose an automated debt collector to collect debts from your customers?
The benefits of an automated debt collection and collection compliance software are clear and compelling:
- Increase collections efforts which are beneficial to your bottom line.
- Save time, money and make everyone more productive while improving their bottom line.
- Collect debts from multiple people with a single click or phone call.
Automated Debt Collection Software Features For Banks And Credit Unions and The Benefits of Using This Type of Software
The key features of an automated debt collection system for banks and credit unions include:
- Automated, integrated software for debt collection that connects to existing banking systems.
- Data is automatically collected from the customer’s account which saves time on data entry.
- Supports multiple languages including English, Spanish, Portuguese, Polish and Arabic. It also supports Braille translation–making it easy to use for every employee in your office who needs access to automated debt collection software.
Features such as online reporting dashboards make retrieving information simple and straightforward while exporting reports into Microsoft Excel gives you complete control of what kind of data you’ll need at any given time. The flexibility of this type of system makes it a perfect match for most organizations due to its ability to be easily customized.
Automation equals efficiency saving financial institutions time and money while improving compliance.
Automated debt collection software is designed with bank needs in mind, and it’s available to help automate the process from start to finish so that you can concentrate on growing your business.
It eliminates tedious tasks like manual data entry or semi-manual batching by allowing users to collect payments online through an automated portal–allowing for increased convenience when managing finances and accounts receivable. An automated system also helps banks stay compliant with federal regulations including FACTA (Fair & Accurate Credit Transactions Act) of 2003 which requires financial institutions adhere to strict guidelines dealing with customer privacy rights as well as the Gramm Leach Bliley Act of 1998 which mandates a heightened level of protection for personal information collected about individuals.
How to find the best company that offers this type of service for your banking institution
Top companies offering automated debt collection software include
Intelligent Banking Solutions, Inc.
Acurian, Inc.
Direct NCS Group, LLC
Loop Financial Services, L.P.
The most important thing to look for is a company that has experience in the banking industry and can offer you best service that will fit your needs: custom solutions for each client’s debt collection challenges or automated processes to help recover funds more efficiently through automatic collections on delinquent accounts with minimal human intervention.
Tips on choosing the right company to provide you with a solution for collecting debts owed by your customers
The most important things bank should look for when purchasing debt collection software is a company that has experience in the banking industry and can offer custom solutions for each client’s debt collection challenges. Some automated processes to help recover funds more efficiently through automatic collections on delinquent accounts with minimal human intervention may be needed as well, but your bank will need to weigh out whether or not this type of service is worth investing in versus leaving it up to a person who could make mistakes when collecting debts owed by customers.
Here are some things you’ll want to consider before purchasing an automated debt collection software:
- -How much of my time does the solution require?
- -Is there a fee associated with every transaction processed? What about if I am unsuccessful at collecting money from someone within 60 days after sending them notices advising them they owe outstanding payments on their account?
- -Do they offer the features I want?
- -How long would it take to integrate this software with my existing system? What about customer service, do they have a good track record of resolving issues quickly and efficiently?
If you are considering purchasing automated debt collection software for your bank or credit union, we recommend spending time reviewing some of the common benefits before deciding which type best fits their needs.
Collecting delinquent payments more dynamically through automation may be needed as well, but your financial institution will need to weigh out whether or not investing in this technology is worth instead leaving it up to someone who could make mistakes when collecting debts owed by customers.
