Debt Collection Software: A Comprehensive Guide to Finding the Perfect Fit to 10x Debt Collections

With a total of 30,000,000 Cr unpaid bills, due to the fact that debt recovery tribunals, which are accessible only to banks, have a dismal success rate of under 25%.

Today customers bank on convenience, ease of access and quick solutions. To be competitive, lending businesses have to continuously examine their methods of working and the debt collection platform they use. Fintechs are constantly making lending easier, faster, and more efficient. Disbursements are in minutes, but debt collections are not.

So, have your collection efforts evolved with these advancements??

Not having a robust debt collection software (or non-adaptable) can lead to:?

• Increased debt recovery times, with a 40% increase in the average time to collect a debt.?
• Loss of revenue for businesses, with a potential decrease of 5-10% in overall collection rates.?
• Higher bounce rates, with a 20% increase in the percentage of debts that are not collected.?

So, finding the right debt collection software solution that scales and adapts to your requirements is crucial to its success. We understand the challenges you face and, in this comprehensive guide, we have uncovered to help you pick the right debt-collection software with confidence.

Highlights

• Understanding your debt collection software requirements
• Finding the right debt collection software for your requirements
• Three key areas you want to look at in debt collection software
• Must-have features you should look for in debt collection software
• Before you finalize your debt collection software, essential find outs
• Conclusion
• FAQs

Understanding Your Debt Collection Software Requirements

Before investing in debt collection software, you should identify your business's unique needs. To ensure that your selection meets your specific needs and your budget.?

Monthly debt volume processing needs:

Define your debt portfolio, the size of your organization and the number of accounts you need to track. This defines the account processing capabilities of debt collection Software.?

Must-have and good-to-have features list:

Prioritize the necessary functionalities and those that are desirable but not essential for successful business operations. It helps justify your budget for debt collection Software.?

API integration level needed:

Different levels of API integration in debt collection Software impact efficiency and productivity differently. For example, basic API integration allows for data transfer between various systems, reducing manual data entry and improving accuracy. Higher levels of API integration, such as real-time tracking of debt collection progress, can provide even more valuable insights and help make data-driven decisions.?

Reporting and communications needs:

Real-time communication features in debt collection Software allow for instant updates, notifications, status, disputes, customer inquiries, and alerts between collectors and debtors allowing collectors to make informed decisions and create action plans.

Finding the Right Digital Debt Collection Software for Your Requirements

There are n number of requirements for debt collection businesses: tracking and managing outstanding debts, sending automated reminders and notifications to debtors, generating detailed reporting and analytics on debt collection performance, integrating with accounting Software for seamless data transfer, providing options for online payment and dispute resolution, multilingual support, customizable notification templates, and compliance with relevant laws and regulations in different regions.??

But, the right Software is one "that fits right with your needs", not with n number of features.

One of our clients one of the largest co-operative banks in India witnessed a 55% reduction in their debt collection operational costs.

There are Three Key Areas You Want to Look at in Debt Collection Software:

Borrower management

• Hawk eye view: Data exchange APIs to consolidate borrower information.?
• Borrower segmentation: Based on Days Past Due (DPD), credit repayment history, due amounts, and repayment intent. Automating their next movement based on activity, helping managers define and plan appropriate collection strategies.?
• Case distribution: Distributed by location, debtor priority, and collector availability for both field agent management and debt collection agencies.?
• Activity and lifecycle management: Monitor and document all interactions with debtors, including communication, actions, and outcomes and identify trends and patterns to optimize debt collection strategies.?
• Communications: Identifying the right communication channel for the borrower. Pre-made and custom template-based personalized automated reminders.?

Agent management

• Collection CRM: Comprehensive management of call center activities through automation.?
• Agent productivity and support: Improve agent productivity with day planners, reminders, and route guidance. An agent can email or SMS a payment link if the debtor promises to pay the agent.?
• Quality management: Ready-to-use communication templates. Using auto-selection logic, measure and improve call quality. It can also be used to train new agents.?

Actions management

• Configurable treatment plan: Routing unrecognized responses to human agents for further processing like pending payments, active liabilities, ongoing payments, etc.?
• Workflow and decision engines: Capture, process, route, and store essential data for completing each lending operation. Provide data-driven insights on customer performance, collection efficiency, and team performance to decision-makers.?
• Campaign management: Setting up and managing customer payment schedules with self-service payment tools, and setting up campaigns to boost the collection on old debts.

Must-have Features You Should Look for in Debt Collection Software

• 360-Degree Customer Information: It provides a single point of access to all essential customer information. Covering the borrower's lifecycle.?

Onboarding, segmentation, debt recovery activity, closure and potential cross-selling.?

• Automated Omnichannel Communications: Identifying the right communication channel in debt collection Software including email, phone, SMS, live chat, and letters, ensuring effective communication and debt collection.?

73.47% of users who receive notification messages too often will consider them spam.?

• Digital Self-Service Portal: Offering alternatives to conventional phone calls, the portal facilitates digital engagement with customers. ?

Online access to account information and payment options allows collectors to handle a larger number of cases through virtual agents.?

• Dialer Features: By enhancing agent communication, the dialler optimizes outreach efforts, making interactions more effective and productive.?

Predictive dialing, auto dialing, comprehensive calling intelligently manages the dialing process.?

• Automation Level: Reducing manual intervention, this feature automates decision-making processes, promoting efficiency and consistency.?

Recovery prediction scores, recovery automation, collection automation, task automation.?

• Compliance Update Processes: Ensuring compliance with legal requirements, the built-in legal processes safeguard your operations from potential legal pitfalls.?

Data management and security, location-based compliance management.?

• Some must have Integrations: Accounts receivable Software, CRM or Loan servicing system, Customer portal, BI solution, Communication channels, Credit rating software, Payment processing software, CVS Upload/Download, API integration, and Payment plan integrations.

Before you Finalize Your Debt Collection Software

a. Key questions to ask

How will it integrate with your systems and modules? (CRM or ERP)??

Has artificial intelligence and machine learning integrations??

Can employees use it without IT help and training time??

The implementation time - Is it below seven months??

EX and UX customization with your branding??

Is the Software cloud-native and scalable??

What will be the customer support POC??

Is it location-compliant?

b. Find out the costs

Software licensing or subscription fees?

Implementation and integration costs?

Maintenance and update costs?

Data migration costs?

Compliance costs?

Downtime Costs ?

Training costs

Conclusion

Debt collection Software gives you the flexibility to handle matters that are crucial to your business, minimizing the need for external institutions to assist with your collections. It provides a holistic view of cash flow and automates business processes.

Using the right debt collection Software can result in 40% increase in debt collection rates, and speeding debt collection process by 8 times, over 40% increase in Days Sales Outstanding (DSO), 60% decrease in operating costs, 30% reduction in overdue debts and a 20% increase in customer satisfaction.

At ezee.ai | Veefin Group we understand the need for a robust debt-collection system ?

We created the most advanced debt-collection software:

COLLECT EZEE

• Highly secure and scalable.?
• Configurable collection strategy.?
• Real-time performance dashboards.?
• Integrated with wide payment options.?
• Digital self-service option for customers.?
• Proactive delinquency for smart nudging.?
• Extensive reporting and analytics capability.?
• Customer 360 and one stop for all interaction audits.?
• Automated follow-up and reminders based on events.?
• Integration with External Debt collection agencies/ agents.
• Capacity planning and an automated work allocation model.
• Configure complex workflows & integrations needed for Legal, Skip trace etc.
• Data-driven intelligence to perform customer segmentation using behavior.?
• Ability to calculate interest rates, commission amounts, Charges, Legal fees, etc.
• Personalized communication channels with intelligence for the best time and medium.

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Ready to experience the difference?

Debt Collection Software FAQs:?

Is debt collection software expensive??

Various pricing models exist for different vendors. Some charge a flat rate, while others offer per-user pricing or a subscription model. Ezee AI offers pay-as-you-grow model pricing.

Is it possible to integrate debt collection software with ERP systems??

Yes, Ezee AI debt collection Software (collect ezee) offers integration capabilities with ERP systems. Improving accuracy and process efficiency by enabling seamless data sharing.

Does debt collection software increase agent productivity??

With features such as day planners, reminder notifications, and routing guidance, the Software simplifies task management, automates numerous call center tasks, and optimizes productivity. Ezee AI debt collection Software (collect ezee) comes with a field agent application.