The majority of collection organizations, from a lender to an outsourced collections firm, are pursuing digital channel interaction and engagement capabilities to expand their consumer communication options.
Most traditional collection software platforms in use today are based on old underlying technology and outdated designs. Even collection software systems deployed in the past five years may already be outmoded.
In the classic movie “The Wizard of Oz,” Dorothy steps out of her house after experiencing a tremendous storm and says, “Toto, I’ve got a feeling we’re not in Kansas anymore.” The same revelation applies to the collection industry, which has been weathering severe social and economic conditions.
The length of time it will take to cure the account of consumers who either won’t pay or those who can’t pay will depend upon the cause, and now of course, take into account various forms of vulnerability including those adversely effected by Covid-19.
It is not a new revelation that the collections and recoveries market is becoming more dynamic and complex. However, what is not widely known is that collections and recoveries operations are struggling more than ever before to keep up with all the changes they need to make.