Right across industries, debt management and collections teams are bracing themselves for an incredibly challenging period. Industry research shows that debt collections will be a priority for lenders as the Government’s financial support packages across US and Europe come to an end, alongside industry forbearance measures including payment holidays on mortgages, personal loans and credit cards; debt collections teams are preparing themselves for a surge in cases.
Research by UK charity StepChange reveals pandemic-related borrowing and arrears has surged by two-thirds (66%) since May last year and now tops £10.3bn. The number of customers deemed toa be in ‘severe debt’ also jumped to 1.2 million – doubling since March 2020. Added to that are a further 3 million at-risk customers teetering on the brink of falling into arrears after taking on extra short-term loans
Using automated processes wherever appropriate and possible will ease pressure on overstretched collections teams, while automating manual case handling and customer communications will help you capture details and identify vulnerability more quickly. Our Debt management solution improves productivity with its automatic and dynamic document generation, bulk upload of the debtors ensuring no manual intervention and seamless orchestration of the interdependent process making it an ecosystem, improving the recovery rates.
The key features and functionality of the solution are:
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