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Pillars of Debt Collection

Collecting delinquent debts is one of the most important yet frustrating aspect of any financial business that gives loans. The financial institutions today think of it as a necessary evil, instead of devoting their time to acquire new customers, new business or pleasing customers that are current with their accounts, they are forced to turn their attention to delinquent accounts. A large portion of any financial institution time and resources are invested in debt collection rather than investing in acquiring new customers. It is certainly in the best interest of the institution to make sure that they are doing debt collection so in the most productive manner possible.


Enterprise Tiger has been serving its customers across continents with varying business sizes, helping them improve their debt collections with ENCollect. We have learned over the years that there are several pillars that are very important for debt collection management and ensuring that the collections are happening on time as well as customer trust is not lost.


The most important pillar is trust and honesty. The relationship between debtor and creditor is very sensitive, and it is paramount that it is approached from a viewpoint of honesty and trust. Collectors need honesty from debtors. Is the debtor being truthful about when they plan to repay, and the reasons why they are delaying payments? And not only that the debtors also need to understand that Collectors are having answers to all the questions they have and are equipped to provide them with all the options. ENCollectTM as a tool not only enables the collectors to provide all the options to the customer but also records the discussion with the debtors and follow-up with them on regular basis.


ENCollect Phoenix fosters trust in lenders by offering transparency at all stages. Debtors are more likely to pay their dues if treated like humans. ENCollect Phoenix bult-in communication module allows lenders to communicate with the debtors in all possible ways. Also, with timely pre-due communication, unintended delinquencies can be avoided to a large extent. ENCollect understands this and helps lenders set up communication to be sent out to the debtors to avoid delinquency in a timely manner also send payment links making them more customer-centric.


Trust is hard to build and needs to be safeguarded at all costs, any predatory practice could endanger this. ENCollect provides the financial institutions with flexible options of addressing the debtor’s request thus avoiding delinquency and allowing debtors to live their lives without an axe hanging over them. ENCollect’s auto communications based on predefined criteria, go directly to the debtor thus proving that the creditor trusts the customer with repayment at a later time.


With the change in the economic environment, a shift in collections strategy is necessary. The success of collections for a Financial Institution depends on well-informed frontline staff, which are well trained in new approaches and behaviors. Change is always difficult, but the chances of new strategies succeeding are far greater when the field collectors understand their purpose and share a sense of ownership in the results.


Enterprise Tiger understands that debt collection is a laborious process, it requires continuous monitoring and disallowing the accounts to go into delinquency. ENCollect is helping its customers by simplifying these processes and is making debt collection less intimidating for both lenders and debtors. ENCollect is streamlining this process by allowing its customers’ business to manage accounts from one, holistic platform that works across mobile and desktop devices. ENCollect with its customer-centric approach has put many debtors at ease with built-in communication tools, industry-standard workflows, best standards, DIY configurations, and an easy scale-up approach.


The financial institutions today are deploying advanced collection tools like ENCollect which helps them in prioritizing at-risk customers for closer and more productive attention. The value-at-risk approach is changing the way successful collections shops operate. Based on this approach, ENCollect offers a variety of contact methods and provides collectors more autonomy to offer tailored Solutions.


Some of the features offered by ENCollect are:


1) Segmentation

2) Configuring Custom Treatment plans (strategy execution)

3) Account Allocation (Auto/Manual)

4) Automated Communication via SMS/Email

5) Mobile App for Frontline Collectors

6) Performance Management Tracking

7) Organization Mapping

8) E-Receipts

9) Legal process management

10) Settlement approval management

11) End to End Repossession Tracking

12) Trail updates & History

13) Rich Reports and Dashboards


All the features of ENCollect are designed to ultimately enable Debtors and Creditors to foster honesty and trust. Lenders and their partners need to think about the debt recovery process with the customer first and foremost in their minds. In today’s changing credit environment, the transactions should be value-based. With years of experience in the end-to-end debt collection process, our ENCollectTM debt collection system is omnichannel, secure, nimble, and easy to implement catering to businesses of all sizes. ENCollect is ensuring success to its customers by creating a compelling business case for collections to operate as a center of value.


References:

https://www.exus.co.uk/en/library-blog/posts/exus-debt-collections-software/blog-posts/honesty-and-trust-two-key-pillars-of-debt-recovery-and-how-to-make-the-most-of-them/

https://www.mckinsey.com/business-functions/risk/our-insights/the-seven-pillars-of-collections-wisdom

https://www.hiltonbairdcollections.co.uk/the-four-pillars-of-successful-credit-management/

https://www.directrecovery.com/blog/the-three-pillars-of-an-effective-collection-process/

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