Consumer debt rose to a new high of $15.6 trillion in the last quarter of 2021 from $14.3 trillion in the first quarter of 2021. More debt means more collections, but it also means more pressure on operations and staff, particularly as rising financial hardship increases the complexity of the recovery process. Quality assurance functions play a critical role in balancing this tension, but also have to deal with an increased workload and a wave of new regulatory requirements.
In his latest Finastra blog, our CEO Nir Laznik, shared how technology can improve an organization’s compliance function and overall operations.
“Today’s most successful collections firms have done a remarkable job of adopting a client-first approach throughout their operations and delivering debtors a consumer-friendly service. These businesses didn’t primarily view Reg F as a burden, but as a way to continue improving their processes while meeting compliance obligations. For example, while regulations require firms to monitor their agents’ behavior and communications more closely, that analysis can also provide tremendous insights for optimizing collection outcomes and training agents that translate into an improved bottom line.” — Nir Laznik
Read more on Finextra.
“Training and monitoring of consumer-facing employees will be critical to ensure that an organization is compliant. Technology will support and help the credit and collections industry meet demanding obligations with ease and efficiency, in order to produce the outcomes a regulator wants to see.”
Consumer Financial Services Regulatory & Compliance Group
“Our challenge going forward is to position our industry and our companies as desirable places to work. We must implement diversity, equity and inclusion in our workplaces, and get the word out that we have changed. Ask your newest employees for feedback—what would make our workplace desirable for their friends and acquaintances? In this post-pandemic world, getting people to crawl out of their comfortable cocoons may be difficult, but it can be done!”
“In the last few years, the buzz of the call centers faded away. Now that many people still have the opportunity to continue to work from home, performance directors need to pivot their focus. We need to ensure that the training is effective in this new environment. The move is from hours in a classroom setting to immediate, personalized micro-learning units that enforce the corrective behaviors.”
“The digital collections movement continues to be in full steam and we are excited to see all of the new technologies that are coming into the ARM industry to help drive enhanced collection performance in a compliant manner. We anticipate additional M&A consolidation globally in the ARM industry, as more digital ARM companies look to accelerate market entry and obtain blue-chip clients and deploy digital-first solutions.”
“Digitization will be critically accelerated in 2023. Recovery organizations may be required to furnish consumers’ account data through consumer-selected platforms that will likely be different from organizations’ traditional payment portals. Organizations should start preparing their technology and operations for that contingency now to harness the trend to their benefit.”
“Data is the new oil, and extracting data from all sources, especially voice, will be a must-have in 2023. We are in the age of machine learning, and ML runs on data. Getting ALL the data and getting it into one place for the ML to do what it can are the key differences between organizations that will make it and those that don't.”
“In 2023, collectors and creditors will be required to work closer together. Reg F oversight requirements have created a new reality of shared compliance responsibility. Servicers and creditors can better collaborate by using new data-driven compliance platforms that provide all parties with critical insights and generate the transparency and trust needed to succeed in a tightening regulatory climate.”