For most industries, digitization today signifies savings, be it in terms of time, money, or both. Businesses are increasingly becoming of the opinion that a digital transformation can earn them much more profit than their human-intensive legacy lending processes. For banks and financial institutions, debt collection is one of the major activities to ensure revenue and portfolio quality. However, it is also one of the toughest jobs where lenders need to deal with a myriad of regulations, multiple forms of contact, collection agencies, and different borrowers’ persona. An effective solution for a well-managed lending ecosystem for Banks, NBFCs, HFCs (Housing Loan Companies), and other Financial Services companies is to use Debt Collection Software.
What is a Debt Collection Software?
A debt collection software, also known as payment collection software, is a digital tool to manage credit risk and recover delinquent debt from debtors. The software can track and follow-up with debtors, predict and prioritize debt recovery leading to faster collections. It stores all debtor information in a centralized database. It can send repayment reminders and offer payment terms to customers, thus reducing the number of overdue invoices and increasing the repayment percentage.
The software can also help manage third-party collection agencies in a better manner. A collection software integrated with ERP and loan management systems covers the overall debt management process.
What are the benefits of Debt Collection software?
As a lender, there are various benefits you can expect from a debt collection software, some of which are listed below:
- Collectors can focus better on each client: A debt collection software presents collectors with vital stats of borrowers so that they are better informed about the call they are making. Also, it helps prioritize customers according to their likelihood of paying back, increasing the probability of successful closure.
- Automates client communication: Debt collection software enables automatic communication across several channels, such as automated calling, creation of SMS, collection letters that are auto attached to emails. Sending quicker invoices to customers allows them plenty of time to process their payment within terms. Auto communications also inform customers in advance whenever they are approaching terms.
- Better streamlining of tasks: Since the software contains centralized information of borrowers categorized according to their levels, it becomes easier for the collectors to plan their day and set their targets.
- Improved transparency: With debt collection software, you will have improved Financial Transparency for better, faster decision-making and more accurate forecasting.
- Increased efficiency in dispute management: You can notify your customers about the progress of their disputes, speed up the resolution, analyze the causes, and do much more.
CRIF’s Contact Collection Software can greatly increase your operational efficiency
CRIF’s “Contact” Collection Management is a secure end-to-end debt recovery solution that helps organizations to automate and streamline the collection process. “Contact” offers transparency and scalability that helps optimize the collection process. The user-friendly interface enables quick adaption and easy implementation. Here are some of the salient features the Contact debt collection system offers:
- Segmentation of customers based on collection score and a combination of business rules.
- Facility to orchestrate the process by selecting the approach, selecting treatment, timing the action, etc.
- Analytics on parameters such as strategic reporting, KPIs, alarms, and a monitoring dashboard.
- Centralized dashboard for escalation management, call result tracking, work queue management, process tracking, etc.
Based on the selected collection module, Contact is able to analyze, monitor, and check the results attained in real-time through the use of a business intelligence platform. Contact has a powerful mechanism to automate complex processes and simplify the implementation of strategies.
So if you are looking to implement one of the strongest debt collection solutions for your business, contact CRIF.