How to Modernize and Automate Your Collections Practice With Advanced Fintech
Running a successful collections or receivables business by only sending letters and making manual phone calls is becoming increasingly difficult. While many businesses have automated some collections practices by implementing auto-dialers and mail solutions, fast improvements in technology require adopting new tech to remain competitive. Modernizing your collections practice through automation – while prioritizing compliance – not only improves efficiency, it also reduces human capital cost and improves your collections rate.
Offer automated online payments.
Americans pay more than half of their bills online, according to a study from ACI worldwide. As consumer adoption of online payments increases, automating payments becomes essential to success. An online payment solution allows you to safely and securely accept payments beyond traditional business hours without additional human interaction. As an added benefit, payment solutions customized for the collections industry include the necessary disclosures to ensure your business remains compliant.
Present smart settlement options.
The more innovative payment solutions go beyond simply accepting the balance due to offering consumers an easier way to pay off their balance through settlement payments. A good settlement offer strikes a balance between affordability for the consumer and profitability for the business. Manual calculations take time and negotiation. Some companies, like HealPay’s SettlementApp, for example, uses an algorithm that considers a consumer’s credit and finances to offer a settlement plan based on parameters that have been set by the business. This creates a win for both businesses and for consumers.
Capitalize on voice automation.
Operating a phone-based collections practice can be extremely resource-intensive when you factor in phone equipment, computers, and human agents. With interactive voice response, or IVR, consumers can guide their way through the payment process. IVR is an automated telephone system that offers customizable scripts and prompts. You can use IVR in place of or in addition to human agents. For example, IVR can walk consumers through basic tasks like checking their balance or making a payment. Or, the system can offer the option to speak with a live agent for interactions that require a human touch.
Adopt cloud-based solutions.
In the past, businesses downloaded software to their consumers, which made it expensive and time-consuming to update. Not only that, information stored on an individual computer can’t be accessed remotely. Cloud-based solutions eliminate those issues by offering software solutions that are accessed via the internet. Solutions are updated faster and more frequently, data and system recovery is easier. Plus, cloud-based solutions give smaller agencies access to the same tools as larger agencies, offering the ability to compete.