The collections and recovery landscape is changing. Rising non-performing loans and increased regulatory scrutiny mean that retail banks must capture more profit from loans they already have on their books. Even though technology transformed the banking industry, debt collection management and recovery at some banks still remains outdated with manual processes instead of fully automated with robust software that has the capability to track delinquent accounts in a compliant manner.
SME & Corporate Lending
As countries across the world start to plan for life after the pandemic, banks are potentially facing a tsunami of non-performing loans to small and medium-sized businesses (SMEs) as well as corporate loans. Traditionally, these businesses are the among the least resilient to economic shocks such as that caused by the COVID-19 global crisis. Helping companies that are struggling is a genuine investment in the future customer relationship. By supporting customers through this unprecedented crisis, banks will help to save a maximum number of businesses while also waiting for brighter days. Businesses that have been supported by their financial institutions will forge stronger ties with them and will be able to launch new investment with full peace of mind.
Navigating the world of collections can be daunting for an auto finance lender of any size. There’s an exhausting list of laws, regulations and processes to be considered, not to mention the staffing and expertise required to be successful. Despite the obstacles, it’s critical an auto finance lender engaged in any type of lending activity have a solid collections strategy, processes and tools in place. A healthy, viable collections strategy will create efficiencies and maximize recoveries – while keeping your lending program thriving in tandem.
The equipment leasing industry is diverse, extensive, and requires a professional understanding of the legislation involved. When it comes to collecting debt in the equipment leasing industry, expertise is needed in how to locate assets, assessing damage caused by the lessee, and collecting monies associated with the cost of repairs. Understanding the importance of having proper paperwork and documentation in place and having proper search procedures in place results in better results in debt collection.
The retail industry has evolved drastically from its early stages in history to the dawn of modern-day department stores during the 1890s, and finally, to the digital shopping experience of today. Modern retail industry stakeholders understand the importance of customer relationships to fuel growth and protect a business’ brand image. When conducting accounts receivable management, this approach is crucial. Whether retail stores use in-house collections, outsource the process to a third-party debt collection agency, or a combination of the two, a consumer-centric approach has proven most beneficial.
Energy & Utilities
In a tight economic and regulatory context, utilities need to work harder to prevent and manage bad debt if they want to stay competitive and improve their resilience. Experience shows that companies are better at weathering downturns if they have already cleaned up their credit processes and minimized overdue debt, because they are able to move fast to cut costs, protect profitability, and reserve growth capacity.