Once upon a time, the customer-bank relationship was a single channel. Loan products were straightforward. And consumer debt relationships typically occurred between a few parties.
My, how times have changed. Collections is now:
In fact, says CEB TowerGroup, “loan collections costs have been the fastest-growing segment in loan servicing.” Controlling these costs is a mission-critical priority for organizations that want to protect profits and grow. However, process improvements are not enough to close the gap.
That’s why organizations are turning to process automation.
Process automation gives banks a key advantage in the marketplace. The technology, says CEB TowerGroup, “facilitates end-to-end automation of processes in the collections process to help banks manage large volumes of loans.”
There are four collections phases that organizations can use process automation to optimize:
Organizations tend to manage these collections phases using siloed departments and technology that gets separated by organizational and geographic boundaries. Process automation systems help to address this issue by integrating tools, systems and data used by banks across the collections cycle into one cohesive system.
Process automation delivers a number of benefits when applied to some or all of your collections cycle, allowing organizations to:
It provides those benefits by streamlining or eliminating the manual performance of collections activities from the soft to the recovery phase, like the following:
It’s no longer enough to perform processes faster. Savvy organizations that want to transform their collections departments must automate processes entirely to see significant savings.
Process automation is one of several technologies that should be in a loan collections system. The report is the first-ever technology analysis of loan collections systems by an industry analyst firm, and it evaluates 14 different vendors.
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