Looking for a New Year’s resolution for your institution? How about investing in new collections technology! TransUnion explains why this is so important in their latest report which you can read here.
Per a study by TransUnion and Aite-Novarica Group, “the collections industry is boosting hiring and technology investments as it transitions into a “next normal” stage. Approximately seven in 10 collections professionals (69%) said technology solution spending will modestly or significantly increase in the next two years. About two-thirds of collections professionals (67%) said employee compensation will increase in the same time period.” Translation: as the economy continues to adjust on the heels of the pandemic, inflation is at a 40 year high and government stimulation packages end and repayment of many deferred payments begins, the only logical result will be an increase in your institution’s delinquency numbers.
While an increase in staffing is the standard solution to increased collection needs, the better option for your institution could be to make a long-term investment in your collections technology. Not only will new technology allow your team to be more efficient, but also give your team an option to work remotely. This is often key aspect in both hiring and retaining talent these days. Per TransUnion: “The main reason companies are considering remote working arrangements? Approximately 71% say it is to attract better applicants and 62% say it is to increase employee retention. One-third (33%) said it was to reduce costs.”
If your institution is among the many that can see changes on the horizon in terms of delinquency, it’s time to take action. Like most things these days, the opportunity for improvement begins with technology. The key to preparing your institutions for the delinquency shift is to ensure your collections technology puts your team in the position to succeed. If you do not feel like your team is using your current technology to it’s fullest potential because it is not efficient or intuitive for them, or if the technology itself is outdated or not cost effective, it’s imperative that you find technology that will fit your institutional needs. The calendar has turned and delinquency is rising, invest in your collections technology today!
– Richard Fernandes