As instant disbursement became more popular in recent years, the world of loan collections has changed quite significantly. In response to evolving trends in digital lending, it's now important for financial institutions to reinvent and modernize collection processes to stay compliant.
To be successful, banks need to leverage digital to transform their collections and streamline their processes. Using VeriPark's feature-rich Digital Collection Solution, financial institutions can take early actions in collections, improve loan collection management and reduce the proportion of non-performing assets.
The capabilities of VeriPark's Digital Collection platform help to enhance recovery performance by communicating with customers as early as possible in the collection cycle. Built on top of Dynamics 365, the collection engine enables financial institutions to implement a collection strategy per segment while reducing the cost to collect. It allows to have one centralized process to handle all debt collections.
On the other hand, the Digital Collection Portal empowers today's digital-savvy retail and commercial customers to request payment holidays, restructure existing loans or even make payments for overdue loans. It combines digital channels with a variety of payment options for a smooth collection process.
Automated Collection Strategy: Supporting different collection strategies based on the parameters such as routing and assignment, SLAs and escalations.
Collection Process Configuration: Structuring the steps in the collection process with activities including SMS to notify customers of the overdue amount, phone calls for Collections Officers to call customers and request collections.
Activity Management & SLAs: Managing possible outcomes in each step of the collection process and configuring SLAs for collection tickets to ensure they are closed within defined time frames.
Collection Settlement: Bringing in the partial and full settlements made towards a loan and updating the collection ticket's details including status, balances, and outstanding amount automatically.
Promise to Pay & Broken Promise Management: Capturing customers' promise to pay towards the overdue loan with the ability to discount or waive the late payment interest rate and/or fees. Updating the collection ticket's stage to 'broken promise' if the customer has not made a settlement against the loan by the promised payment date.
At Commercial Bank of Africa (CBA), there is an average of 600,000 collection tickets raised every month. Thanks to the streamlined workflows in VeriPark's Digital Collection Solution built on the Dynamics 365 platform, the bank manages the end-to-end collection process to ensure the collection happens within the early stages of the payment cycle. The solution helps to reduce the number of customers forwarded to recovery and write-off process. The bank sends proactive SMS and e-mails to customers to remind them that their loan due date is approaching. If the loan is not repaid on time, the customers receive a second and then a third reminder.
VeriPark's Digital Collection Solution brought several benefits to CBA, including an automated collection strategy based on the product or customer and effective activity and workflow management capability. Centralization of the entire debt collection process, simple access to data on collection tickets, and accurate reports on debt collection were other key benefits that reduced write-offs, provisioning and improved cash-flow.
Read the CBA case study to find out more.