Debt Collection Software

Debt Collection Software:

Debt Collection Software is a software that is used to to track and follow up with debtors as well as predict, and prioritize debt recovery.
A Debt Collection Software can removes the dependencies on third party collection agencies for repayments from clients. It help reducing the number of overdue invoices and increasing repayment percentage by sending repayment reminders and offering payment terms to customers. The software is usually integrated with ERP and loan management systems to cover the overall debt management process. A Debt Collection Software automates most of the aspects of the collection process and empowers lending organizations with end to end borrower management, recovery automation, and advanced analytics.

Features and Benefits of Debt Collection Software:

Some of the common features of Debt Collection Software that can b benefit the user include:

• An accurate borrower profile can be maintained to avoid the repercussions of chasing after wrong profiles. It helps agents to have a meaningful conversation with the borrower by having consolidated borrower information which covers all the stages in the borrower life cycle such as borrower onboarding, segmentation, debt recovery prediction, and case closure. Borrower information can be accessed from several data exchange APIs. by collection CRMs. The profile information of the borrowers can be strengthen for future use by this information.
• Import of existing and older cases from other software is also allowed in this software.
• Collections software uses DPD, credit repayment history, the amount due, and repayment intent to segments your borrowers into different debt buckets. It automates the movement of debtor from one bucket to the next based on time passed and repayment activities after identifying the number of debtors in each bucket. Borrowers can also be categorized and labeled who have more than one loan due. Managers can decide the correct collection strategy that include call, email, or reaching out through field agents after the classification of borrowers.
• The debt collection software can handle distribution right for the start of inquiry, disbursal and collection by automatically mapping and distributing cases based on the availability of collectors, agents, and geographical location. Case allocation can also be made limited by managers to ensure that collection agents work on high-priority debtors first.
• It help tracking the activities of your customers on your website, e-mails, and other assets that can trigger a task for collection teams. The collection management software reciprocates the details in real time as  soon as the debtor interacts with your message.
• Targeted notifications can be send that can remind debtors for the date and time due for the installment and loan repayment.
• The complete call center life cycle from the time of the first contact to repayment collection can be easily managed.
• The productivity of field agents can be effectively managed with reminder notifications, day planner, and route guidance to optimize their time on the field.
• All field force activities can be tracked by the managers to ensure productivity.
• Debt collection software can be integrated with CRMs, loan management systems,  in-house applications, and third party apps to overcome the challenges of information silos.
• Data driven insights on customers, collection efficiency, and team performances can be provided by the debt collection software analytics to help decision makers in evaluating ROI and eliminating bottlenecks from the collection funnel.
• Insights on borrower profiles, agent performances, active liabilities, pending payments, ongoing payment activities, and more can be derived by smart analytics dashboards.
• Cases can be distinguished based on a change in the lead stage and a performance report can be generated based on regions, agents, products, and teams.
• The number of completed debt recoveries, intends to pay, non-responsive debtors, and the average time required for the debt recovery are provided in a consolidated report and with the help of this reports, all the teams are in sync about the overall recovery performance which will avoid duplication of efforts. Hence, each stakeholder is aware of the stage of repayment of defaulter.
• Recovery prediction scores and the expected recovery time can be assigned to individual borrowers through automation and advanced analytics. This will help the management to take informed actions for individual cases and have a better contact strategy with the borrowers.