Ease the pressure on collection management
Although collection management has progressed from the old days of paper-based reporting and manual follow-up to a more automated system, it still has its limitations, particularly in the way overdue cases are bucketed together without differentiation based on size, age or tenure.
While the future of collection management lies in technology, auto-diallers and monitoring systems cannot substitute the intuition, skills and experience of collection managers. More so in these times, when banks cannot take a rigorous stand on debt recovery and must instead temper their approach with pragmatism. Thus, every delinquent loan must be weighed on merit and a mutually acceptable solution must be proposed to salvage the maximum possible value. On top of that, banks taking financial support from the Government in the form of capital participation or asset guarantee will have to ensure compliance with the terms of the deal and regularly report the usage of these funds.
Naturally, this puts an immense workload on collection managers. Since skilled personnel don’t come easy, banking institutions have to turn to technology to bridge the gap. For instance, a system that provides a 360 view of customers, consolidated across all the relationships they may have with the organisation, is a valuable asset to accounts receivables analysis. Technology can also be a key enabler of compliance and reporting requirements in collection management.
If they still can’t cope with the pressure, banks can seek the help of professional collection managers until their own infrastructure is scaled up.
While the future of collection management lies in technology, auto-diallers and monitoring systems cannot substitute the intuition, skills and experience of collection managers. More so in these times, when banks cannot take a rigorous stand on debt recovery and must instead temper their approach with pragmatism. Thus, every delinquent loan must be weighed on merit and a mutually acceptable solution must be proposed to salvage the maximum possible value. On top of that, banks taking financial support from the Government in the form of capital participation or asset guarantee will have to ensure compliance with the terms of the deal and regularly report the usage of these funds.
Naturally, this puts an immense workload on collection managers. Since skilled personnel don’t come easy, banking institutions have to turn to technology to bridge the gap. For instance, a system that provides a 360 view of customers, consolidated across all the relationships they may have with the organisation, is a valuable asset to accounts receivables analysis. Technology can also be a key enabler of compliance and reporting requirements in collection management.
If they still can’t cope with the pressure, banks can seek the help of professional collection managers until their own infrastructure is scaled up.
