New Technology Must be Integrated with Traditional Collection Tools

Robert Fite

Collection organizations are recognizing that in order to drive better results from emerging technology, they must leverage and integrate traditional collection infrastructure that is already in place.

Emerging contact channels like email and SMS (text messaging), and new service technologies like payment and self cure portals represent an exciting opportunity for ARM operations to interact with consumers. But simply investing in platforms for these systems will not instantly drive the results companies are looking for. In fact, if not properly integrated, they could cause more headaches.

A fantastic new self cure, self pay portal for debtors is useless without live collectors, traditional mailing, or IVR campaigns to steer consumers to it. And would it make any sense to set up a new payment resource that does not utilize the existing acceptance infrastructure of a collection agency?

Likewise, giving collectors the technological ability to send a consumer a text or email is a dangerous proposition if the communications aren’t automatically noted in a company’s existing collection software suite.

We have been listening to our ARM clients work through these issues and now offer a single-platform receivables solution for managing collections and payment processing. There is no doubt this will be an ARM technology trend going forward.

The concept of process standardization is critical to integrated systems. Disparate systems can lead to data that is hard to read or understand, or worse, is corrupted. A standardized format system will ensure data integrity when segmenting portfolios, assigning accounts, executing correspondence, managing the skip tracing process, processing payments, and documenting all interactions.

Collection professionals should also consider assessing systems delivered through a Software-as-a-Service model. Leveraging the Cloud means that updates, upgrades, maintenance, and support are handled remotely, rather than requiring an internal team to monitor the system. Running the system though online servers also offers users a level of redundancy and protection of sensitive data.

Technology has already, and will continue to, change the ARM industry. But with all of the advancements, it’s important to remember the current tools that drive the best results. By taking the time to integrate new technology with the old in a standardized system, collection professionals can use what they need while leveraging a platform that can be expanded to accommodate emerging technologies with seamless integration.

Rob Fite is the Vice President of Collection Solutions for LexisNexis® Risk Solutions, and brings with him nearly 20 years of experience in the fields of collections, credit, and risk management. At LexisNexis, Rob is responsible for leading LexisNexis collections market strategies, product development, business direction and revenue growth.

Editor’s Note: This article originally appeared in the latest issue of Know Your Debtor, a free quarterly newsletter focused on the U.S. consumer environment. Make sure you’re registered to receive insideARM’s newsletters on your User Profile page.