Technology and Debt Collection

  • Posted by: Site Administrator
  • Category: Blog

  Debt collections is a vital process in the loan cycle. It allows Banks and financial institutions easily collect money disbursed in loans. Debt collection is a complex process that involves monitoring and management of several loan accounts under different loan product portfolios and with different or unique repayment terms. Financial institutions today across the world find their access to capital constrained by competing investment interests, risk weary shareholders and unpredictable markets. With increased borrowing, coupled with emergence of small scale lending institutions in the loan industry who have led to increased competition, opportunities to increase returns from loan portfolios has been reduced significantly.

        Most Banks in Kenya and the East African region are now forced to shift away from business strategies that over-relied on cheap access to capital and high liquidity and are now focusing on effective and efficient debt recovery. Given the sophisticated business environment where lenders operate in, where borrowers have multiple debts from several lenders as well as increased regulation by government on the lending industry, there is need for investments in information technology in order to streamline the debt collection process and to reduce the value of non-performing loans.

       Such IT investments need to boost productivity and provide avenues for Omni-channel initiatives and options majorly on debt collection. The Tera Collect Debt Collection System by Nagalakshmi Solutions Limited is hence an opportune solution. It leverages current loan market dynamics and offers a solution that bridges the gap between the debt collection process and the experiences of borrowers throughout the debt collection process. With this solution, Banks can automate the entire Debt collection process and issues surrounding collection through automation and digitization and process streamlining. It is an effective and fully customizable system designed for quality and accuracy of information stored and generated by the debt collection system. Tera Collect also eliminates the need for manual systems to maintain loan balances, payment due dates and other crucial information pertaining to loans.

Why Tera-Collect is ideal for debt collections

       Tera Collect is designed specifically to assist lenders streamline the collection process, reducing the chances of errors as it provides accurate data insights that help Bank agents recover their debts efficiently and quickly. It provides a 360-degree view of debt data that comes in handy in collections management. Tera-Collect also acknowledges that Banks treat loans differently, therefore, it segments debt collection activities on the basis of various elements to allow certain loans to be routed to specific agents. Tera-Collect also fosters engagement with customers hence driving collections. Such engagements allow for prompt notifications and reminders to borrowers, notifications to staff on events in certain accounts among others. Another key element is agent productivity whereby the system allocates an equal amount of workload to each agent per day automatically. It allows for every agent to handle similar workload amounts and delivers performance reports for review of every agent. The system also has a leave application functionality that allows re-allocation of workloads in situations where an agent is out of office. This ensures that no loan is unattended at any given time.