5 common collections challenges (and how you can overcome them)
Collections plays a critical a role in your institution’s financial health. Limited resources, personnel, and time are common denominators for many collections departments. I’ve worked with financial institutions to streamline their collections operations for years, and we typically see operations afflicted with the same challenges and obstacles. As the economy and consumer sentiment continue to improve, financial institutions can expect to see lending increase. In fact, according to Experian, credit unions saw a substantial increase in auto loan market share from Q4 2015 to Q4 2017, increasing auto loan balances by 23%.
Do the following challenges seem all-to-familiar as your team works delinquent accounts?
1. Lack of Automation
A common challenge we see in financial institutions is an increase in the workload of their collectors due to lack of technology and automation. Collectors are faced with multiple manual processes that not only make their collection process inefficient, but increase the opportunity for human error.
continue reading »