Improving performance management in an arrears portfolio

Martijn Groot, collections control specialist at Aryza, discusses how technology can help credit managers in banks and other institutions to drive efficiency and improve their performance management processes.

With many consumers cutting back on everything but the essentials and businesses grappling with lower consumer spending – alongside rising costs, the number defaulting on their pre-agreed payment arrangement is only set to increase. To avoid cash flow problems and businesses falling into debt themselves, credit managers are striving to become more efficient at managing debt.

Bring everything together for greater visibility

Managing an arrears portfolio of credit records is far from an easy task. With recording handled by a range of different collection partners, the information provided and formatting of these documents can vary significantly.

Alongside this, accounts are all at different stages, and each is assigned to an individual with their own, unique circumstances.

Overseeing the collections process for each of these accounts — whether there are ten or 1,000 — requires significant resources. Those unable to keep the debtor informed of their position and options will, over time, damage their reputation and potentially lose businesses.

This is where technology can help with performance management software able to provide banks and other companies with full visibility of the entire process, rather than having staff browse through several disparate sets of information.

The ethos of these systems is to bring all the information from multiple collection partners, databases, and locations into one centralised place. It can then be displayed in a consistent and easily understood dashboard with predefined KPI’s

Having a handle on your collections process

Healthy cooperation along the credit management chain depends on shared ideas and understanding. Aryza Control creates a uniform view of case data and offers powerful tools for analysis and cooperation – all vital elements for an effective partnership. Gaining insight is the key to achieving an optimum spread of the benchmark portfolio and improving yield.

Improved reporting

One of the most time-consuming tasks in any business is the creation of reports. In the sensitive and tightly regulated field of debt recovery, it can take even longer.

Through the deployment of specialist technology, businesses can generate more than 50 different types of reports in a matter of minutes, depending on the information that’s needed for the client. These can be generated automatically or in line with each client’s requirements.

This data is automatically monitored and can provide powerful insights to enhance the decision-making process. For example, it allows businesses to see how their relationship with individual collection providers is faring in terms of a cost-benefit ratio, and whether that company is in line with standards for socially responsible credit management.

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