Many collections agencies are still operating with outdated systems, keeping them from enjoying the benefits of modern technology. Potentially worse, systems built on older technology are keeping agencies from growing and, ultimately, could force these agencies to close their doors. Before the industry passes them by, collections agencies must begin adopting a modern collections platform. But what features should these platforms include to ensure success today and in the future? The best platforms include features designed to increase collections and improve employee efficiency while simultaneously reducing operating expenses.

Technology troubles

Current collections software solutions are not keeping pace with today’s operating demands and complexities. They are affecting your organization’s performance, security, compliance, and staff.

That is partially because many of the on-premises applications currently in use were created with a large amount of customization. While that might have provided the functionality needed at the time, it now leaves organizations unable to upgrade without the risk of breaking custom code. Upgrades would require massive code rewrites, which would take considerable time and money.

This also limits how much, if any, modern technology can be adopted to better serve clients and provide overall business benefits. Integrating this modern technology into your outdated architecture can prove difficult, timely, and costly – if it can be integrated at all!

Current systems are often complex and lack visibility into the valuable data housed within. This data provides critical information about how your business operates as well as on the efficiency of your staff. It also gives organizations deep insight into their clients. Current systems often require individuals with specialized skills to gain visibility into that data.

Compliance regulations and other issues require systems to be updated. However, due to their complexity, many current systems are difficult to update. It takes considerable time, resources, and money to keep up with these changes.

Working with these  systems places a greater burden on people resources to bridge the growing gaps that these systems create. In reality, it often takes almost heroic efforts on your internal teams to support your business. These efforts increase the cost of ownership faster than your revenue. In addition, it takes a long time to learn how to use these systems. Systems without modern UX don’t appeal to “digital natives” who are used to using the latest tech.

Today’s requirements

Agencies that can’t adapt to rapidly changing regulatory environment and consumer behaviors will find themselves overtaken by more agile competitors. So, what is the answer? Collections agencies need a modern platform that is intentionally built to drive success. But what does such a system look like and what features must it include? Let’s take a look.

Configurable workflows

As in just about every industry, organizations are looking to enhance employee efficiency. Aligning your agent workflows within your collections and payments software provides staff with the tools to make them more productive but also to enhance the collection process. These integrated workflows should be created to support several lines of business and must use data feeds to configure agent queues, client campaigns and more.

AI-driven segmentation

AI can explore your data more easily and quickly than even a team of agents, giving you greater visibility into the goldmine of client data in your systems. AI and machine learning can group like accounts to determine the propensity-to-pay, best time to call, and help prioritize accounts for specific outreach campaigns. This information also gives organizations the necessary data to develop successful omnichannel communication strategies.

Analytics and reporting

Modern systems must include a host of dashboards, including a broad range of pre-built and custom reports. With this information, organizations can gain insight into customer preferences for a greater chance of successful collections.

Merchant processing

Because taking payment from the consumer is primarily what you do, payment processing must be embedded within a modern platform.  It needs to do more than merely take all forms of electronic payments, credit cards, debit cards, EFT and ACH. It should also include advanced capabilities, such as auto-posting, NSF reversals and enhanced reconciliation to save your back-office team significant time.

Benefits of SaaS

Modern platforms must be hosted by the provider, helping organizations say goodbye to cumbersome maintenance, as well as server and data hosting fees. And those built on a true single-instance, multi-tenant SaaS platform includes database administration, cloud hosting, production and testing environments. This means that each client tenant shares the same foundational server infrastructure, allowing for easy maintenance and upgrade management with new features. This allows  support teams to be more effective as they are focused on a singular software version. And it enables rapid scaling without infrastructure implications.

Real-time security and compliance

In today’s digital world with a host of online threats, any modern platform must include always-on security protection back by industry certifications, including ISO, SOC 2, and PCI. It should  be hosted on a trusted cloud security infrastructure, such as Oracle Cloud Infrastructure. These infrastructures are built and maintained by cybersecurity experts, helping reduce the risk of security threats for cloud workloads. In addition, regulatory compliance guardrails must also be built into client workflows to ensure that you stay in compliance as industry and government regulations change.

Always up to date

Taking system updates shouldn’t take days or weeks or  require a host of technical expertise. These hurdles can keep collections agencies from implementing valuable updates, limiting their ability to efficiently operate in today’s ever-changing industry. With a SaaS platform, monthly updates provide ready access to new features and functionality while eliminating time and labor to upgrade.

Third-party integrations

Modern systems include real-time APIs (application programming interfaces) that help organizations take advantage of the network effect. Pre-built integrations allow organizations to easily integrate into a collections ecosystem with no technical resources required. Organizations can connect to all the solutions necessary to run your business. In addition, access to these integrations helps boost innovation, giving organizations the power to develop customized strategies and solutions to enhance collections at a lower cost.

Change for the better

Change is often uncomfortable. But in today’s digital world, change is inevitable. Organizations should  adapt to these changes or they risk going out of business. This includes collections agencies. They must move beyond the current limitations of their technology if they wish to enjoy success today and in the future. And, given the rapid changes seen in the collections industry and the acceleration of innovative technologies, collections agencies must adopt a modern platform designed to address these challenges.