All industries are feeling the current shift in the economy, including credit unions. With rising inflation, increased consumer debt and hardships resulting from the pandemic, credit unions are seeing an increase in late charges, overdue accounts and delinquencies.
Unfortunately, credit union collections and recovery departments have often been overlooked when it comes to updated technology and processes. Many are still working from spreadsheets, working with manual systems or using inexpensive but unscalable solutions that just barely met the minimum needs of a collections department.
The increase in delinquencies and late payments necessitates a system that can not only track and work the loans, credit/debit cards and negative share draft accounts efficiently, but also drive member communications—meeting them where they are most comfortable and communicating through the channel that best meets their needs. Interestingly, text messages have proven to be an efficient collections communications tool.
Great member relationships are built on great communication. Credit unions have understood this truth from the very beginning and still live by it. Members’ preferred communication styles and requirements have evolved over the years, but the fundamental purpose has stayed the same.
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