Advantages of automating Debt Recovery processes

Financial Debt recovery is amongst the biggest sources of revenue for the debt-recovery industry. In America for instance, debt-recovery accounted for nearly 40% of the “collections” revenue last year!

Debt collection or debt recovery is never easy. Financial Institutions have to deal with numerous regulations, develop and follow up on multiple forms of contacts, and deal with 3rd party or outsourced Collection Agencies as well as multiple borrower profiles. This includes a plethora of default cases or defaulting debtors.

Loan Financing, NBFCs, and other such financial institutions use a myriad of digital tools and applications to streamline their debt-recovery functions. But most of them face the same problem – Most of these applications are disjoint and disconnected from the larger enterprise. They are not integrated into the main organization-wide software.

In most debt-recovery agencies software is implemented in separate silos or compartments, with each working in complete isolation. This often leads to the lenders often getting strangled and frustrated with frequent manual interventions that such compartmentalized software applications intrinsically bring with them. This is precisely where debt-recovery automation comes in.

What is debt-recovery software?

Debt-collection software is also called payment collection software. It is a digital solution implemented for tracking and following up on pending dues from debtors, predicting borrowers’ patterns, and prioritizing debt recovery. Automating debt recovery also ensures faster collections.

Ordinarily, lending institutions depend heavily on third-party debt-recovery agencies for collecting pending dues from debtors. Implementing an automated collection software immediately eliminates this dependency. In addition, advanced payment-recovery software can send automated reminders and even offer re-negotiated payment terms to debtors. Thus, it finally results in significantly reduced overdue invoices and increased repayment percentages.

What are the most important features of good debt-recovery software?

A refined automated debt-recovery software should have the following broad categories, with sub-features in each category –

Borrower Management

This module usually has the following components –

• Panoramic debtor profile, offering 360° views of each borrower profile.
• Borrower segmentation
• Borrower asset classification
• Case distribution
• Borrower financial activity tracking, and
• Precise and targeted alerts and notifications

Agent Management

Agent Management can be an institution’s in-house debt-recovery department (first-party), or third-party collection agencies. Agent Management consists of the following modules –

• Call center lifecycle management
• Debt-collection Field Agent productivity
• Integration of Agent API module with other related software, and
• Quality Audit of Agents

Advanced debtor analytics

• Dashboard for borrower profiles
• Dashboard for agents (both first-party and third-party)
• Comprehensive Reporting options
• Consolidated reports on debtor profiles, agent performances, active liabilities, pending payments, outstanding recovery amounts per borrower and more
• Debtor intent-to-pay analytics
• Non-responsive debtors

Beveron Technologies LLC is a pioneer in the field of automated debt collection solutions for the “recovery” sector. Our Smart Debt Collection tool is a complete cloud-based solution for both first-party and third-party debt recovery institutions and agencies. Our app incorporates all of the above features in a neat and comprehensive package, ensuring that your client, as well as the borrower, are always in sync when it comes to outstanding payment alerts, automated reminder e-mails, borrower profiles, and outstanding amounts of each borrower, and much more.