A prominent bank recognized the need to modernize its debt collection process to enhance efficiency and customer experience. The bank’s traditional debt collection model was limited, leading to inefficiencies and delayed actions. In response, the bank implemented our innovative debt collection automation solution that transformed its collections.
The Challenge
Before adopting our debt collection solution, the bank faced several challenges in its debt collection process:
- Manual Processes: Their debt collection involved time-consuming manual tasks, including sending demand letters and notifications to debtors and auctioneers.
- Inefficiency: The bank’s manual communication methods resulted in delays in sending notices and letters, which impacted the bank’s ability to recover debts promptly.
- Limited Transparency: The lack of real-time notifications made it difficult for debtors and bank employees to stay updated on the status of accounts.
The Solution
The bank’s adoption of our solution in its debt collection process brought about remarkable changes and improvements:
Solution #1: Repossession Transition
The bank achieved a 100% transition from manually issuing repossession orders. The automated system streamlined this process, enhancing accuracy and speed.
Solution #2: Real-time Information Sharing
Automated systems enabled the bank to promptly send information on repossession to auctioneers on day 14 at the end of the due date.
Solution #3: Effortless Demand Letters
Users were empowered to send demand letters with just a few clicks within the system, eliminating the need for manual letter preparation.
Solution #4: Efficiency Boost
The bank witnessed a significant relief on collection tasks, with credit officers now handling only 40% of the workload, a 60%
Solution #5: Instant Notifications
Automated notifications ensured that debtors received timely email notifications, SMS, and letters, promoting a proactive approach to debt resolution.
Solution #6: Early Payment Incentives
Approximately 60% of dues were paid before the due date (within 0-30 days), reducing the remaining workload for the bank to just 40%.
Solution #7: Simplified Auctioneer Communication
Automation eliminated the need for manual communication with auctioneers to inform them to stop pursuing customers who cleared their arrears.
Solution #8: Enhanced Cure Rate
The cure rate increased by an impressive 80%, representing successful debt recovery.
Solution #9: Reduced Turnaround Time
Within just one month, the bank experienced a 90% reduction in Turnaround Time (TAT), demonstrating the rapid positive impact of automation.
Ready Automate Your Debt Collection?
Contact us today to schedule a demo. We will discuss your requirements and start transforming your debt collection system.
