Life as we know it revolves around technology. Business functions, processes, communication, information, and productivity all rely on some form of technology whether it’s your computer, cloud storage and data center, telephone, or even the software you use on a daily basis. For the collections’ agency, this reliance on technology is no different. Earlier on the blog, we discussed technological needs in collections. But what we haven’t discussed is how technology has evolved the collections process. Since it first began, the art of collections has changed tremendously. Now, the collections industry relies on the use of technology to communicate, store, and analyze information like analytics, automation, and Compliance Management Systems (CMS).
For many industries, including debt collection, information is generally the key to success. In order to be successful in collecting unresolved accounts, it is important that agencies acquire updated information on the debtor. This is where analytics come into focus. Analytics can provide collection agencies with a sharper focus of who a debtor is. Typically, this includes demographic data (age, gender, employment details, etc.) and behavioral data, both providing crucial insights to make collection calls more productive.
In addition, advanced speech analytics can help automated messaging machines best monitor telephone calls to improve operational efficiency while also saving both money and time that would otherwise be spent training collection agents and other call center personnel. For example, Account Resolution Team utilizes our chatbot, Art, to provide 24/7 support and help to debtors around the clock, especially when live agents are unavailable.
Predictive analytics, an advanced method specially formulated to predict outcomes of future events, has made a large impact in the collection's industry. Through the use of data mining, artificial intelligence and monitoring statistics, technology is now able to forecast and predict the probability of future events. This not only allows collections to best prepare and adapt for the future, but also improve collection performance.
Evolving to be one of the most useful technologies across many industries, automation, in combination with the power of analytics, has proven to be beneficial to the collections industry. Eliminating the need for human monitoring, automation has improved the process of collections including payment follow-ups, and meeting scheduling.
Compliance Management Systems (CMS)
Debt collectors are tasked with three difficult jobs at once: collecting unresolved accounts, retaining clients, and staying in compliance with federal and state regulations. A compliance management system is not just a piece of software or technology to the collections industry. In fact, many agencies view it as the foundation to success and choose to build this technology from the ground up. CMS not only helps enforce the responsibilities and requirements of business processes, but it also reviews operations and takes corrective action as necessary. This technology automates the collection process further and generates reports to analyze compliance with all aspects of consumer financial laws.