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Collections Call 

Collections, a fundamental component of lending, can be managed much more efficiently with the right core and solutions. Here’s one success story. 

Blog,
Kris Frantzen – Senior Product Manager

In a perfect world, nobody would need to borrow money, or if they did, they’d pay their debts in full and on time. 

Fortunately, yes fortunately, we don’t live in a perfect world. Debt can be beneficial. Individuals and companies rely on debt, and by doing so, they create financial systems, jobs, and robust economies. 

Still, life happens. Some fall behind on their bills and may even slide into arrears and bankruptcy. 

Today, however, superior banking technology is available to help credit unions and other financial institutions assist those in tough times. 

Innovative solutions—especially cloud-hosted—free up credit unions from red tape, paperwork, and redundant IT processes so they can pay more attention to their members and help them right their ships. 

Streamlining and synchronizing all those involved in the process opens the doors to quicker resolutions and better collection rates. 

And that is good for any credit union’s business. 

With a modern solution that better connects all stakeholders, members may see more opportunities to assess overdue loans and the member’s ability to repay based on past and present activities and adjust workflows, communications and other processes accordingly. 

And when collections improve, so do the credit union’s financial statements. 

The right technology should allow a credit union to educate and empower customers to maximize their investments. It should include enhanced training tools, forums, and other communication channels to keep both members and lenders aware of their options. 

It can also give lenders data to consider past promises to pay made across multiple channels and even account information and balances to assess the best paths to collect from members. 

And lastly, it should deliver new functionalities such as AI and data analytics to help both sides come to business-friendly conclusions. 

Today, credit unions are driving meaningful applications employing Artificial Intelligence (AI) to promote more convenient business rules, work with partners better, and employ Explainable AI (systems that provide clear and easy-to-understand explanations of AI decisions). By doing so, solutions prove their worth by allowing for greater transparency, interpretability, accountability, and fairness. 

And let’s not forget efficiency. 

Gone are the days of sharing paperwork—yes, paperwork in folders and binders with notes and Post-its—up and down the credit union to keep all interested parties up to date with information that may grow dated amid red-tape delays. When credit union managers and employees are technologically aligned with themselves and the borrower, collections run much smoother. 

While on-premises systems get the job done, credit unions can shine when relying on solutions that are hosted in the cloud and delivered via SaaS. 

At Temenos, we believe our cloud offerings empower credit unions to improve their collections activities better than any other. 

Don’t take our word for it. 

Listen to our customers. 

At a recent webinar on our collection capabilities, Melanie Robinson, Recovery Solutions Manager at All In Credit Union, shared her institution’s experiences with Temenos’s cloud hosting for collections. 

Prior to signing on with Temenos, collections staff relied on emails and phone calls to see if their IT staff could give their provider access to their systems and address any issues and tickets. 

Today, all is seamless and upgraded in real time. All In’s IT team works much better when in sync with Temenos, and should another disruption occur like the pandemic, which cut off access to the office, operations will flow smoothly. 

“We have been using the cloud for a couple of years now and it’s had tremendous benefits to our function,” Melanie said. “It helped us to rely on the system better.” 

All In must deal with multiple repossessions, and before going paperless and using modern tools to go through repossession, bankruptcy, and legal processes, company employees were using regular files. The collectors would request repossessions, fill out paperwork and then go through filing procedures prior to approaching management and legal for approvals and guidance on any next steps. In each stage, someone would have to pass a file on to a colleague. If it were locked in a desk or somebody was out for the day, the process came to a halt. 

“It would put additional time in between doing what we needed to do to cure that delinquency or sell that asset,” Melanie told webinar participants. “When we went to utilizing cases as our management tool for those types of accounts, it gave us back so much time in our day.” 

Gone are the late hours of going through paperwork and files to make sure things were where they needed to be. “Now with us using cases for the last couple of years, everything is streamlined, it’s more efficient. Everybody can see what they need to see when they need to see it.” 

And the system also tells you what the next steps are and how to best work with outside parties. 

“And to speak really quickly on the connectors, we would not be able to function without the BANKO connector. In the southeast where we operate, there is a great deal of bankruptcy that involves a great deal of filing. Sometimes the mail is not the best avenue to get those notifications,” she said. “With our BANKO connector, we are updated every 24 hours with new filings, new motions, and things of that nature, so it’s really kept us in compliance and helped us so much.” 

BANKO® by LexisNexis is the Temenos connector that provides institutions with an automated process for monitoring accounts for bankruptcy filings, dismissals, and conversions.

At Temenos, we add value to collections by facilitating the use of advanced AI and machine learning, which enable our system to be highly instructive for collectors by analyzing account histories to determine the best path forward for all involved. Configurable business rules allow for the automation of workflow decisions, ensuring efficient handling of cases based on past behaviors. Our open API facilitates seamless integration with internal and third-party systems, offering unparalleled flexibility for credit unions seeking to optimize their collections. Furthermore, our suite of connectors supports predefined integrations with core systems, and our case management tool streamlines the tracking of complex processes such as repossessions, foreclosures, bankruptcies, and fraud, ensuring regulatory compliance and a comprehensive audit trail. 

Let us help you. 

Contact us to learn more about how our solutions can bolster your collections efforts. 

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Blog,
Kris Frantzen – Senior Product Manager