The financial stability of many banking institutions largely depends on the loans issued and their timely repayment. The weakening of credit risk policies and procedures leads to an accumulation of arrears, and, as a consequence, financial losses. 

Designing debt collection management software, RNDpoint’ engineers aim to increase collection amounts, automate collection procedures, and improve customer experience. 

In short, we help businesses to maintain efficiency and profitability by means of debt collection management software.

Why Choose Debt Collection Software?

 Debt collection automation. Smooth processes from the first connection to the last payment

 Scalability. Integration with any third-party systems and the possibility to add new features in the future

 Productivity growth. Improvement of the collection teams’ productivity and an increase in loan repayments

 Customer loyalty. Debt collection approach that establishes a positive client relationship

 Security. The highest standards of data protection and risk management

 Simplicity. User-friendly and intuitive systems

Debt Management Software

RNDpoint’ experts design cloud-based debt collection software for banks, microfinance institutions, and other involved parties.

We develop debt collection software that becomes a unified system for all departments of the company. This kind of online platform provides unlimited space for storing and managing all information about debtors. It significantly automates debt repayment processes such as reporting, payment processing, data entry, mailing, and more.

In debt collection software programs, our engineers implement different credit scorecards. These are PD (pre-delinquency), PTP (promise to pay), and more. It helps segment customers based on various data and accurately model debt risks.

Debt management software solutions

  • Decision-making strategy development
  • Debt collection stages automation
  • Required internal and external integrations
  • Compliance certificates implementation

Case study: Debt Collection Automation from A to Z in Just a Few Months

debt collections and recovery automation

Our customer, the user of the Collections system, is a sizable retail-oriented bank with a focus on lending to SMEs. Therefore, debt collection management is one of the bank’s essential business operations.

Stages of Debt Collection

There are several main stages in the debt collection process. They can vary depending on the processes/workflow in each particular company or new stages can be added if necessary. 

According to the target audience, RNDpoint can provide you with the following IT-solutions:

  • debt collection software for banks,
  • debt collection solutions for corporate business,
  • debt collection software for small and medium businesses (SMBs),
  • debt collection agency software,
  • debt management solutions for microfinance institutions (MFIs),
  • debt collection programs for government institutions and healthcare providers.

Depending on the stage, the set of measures and the way of contact with a debtor is gradually changing. Our specialists develop debt recovery management software that automates the 5 stages of the debt collection process.

  1. Pre-collection stage

At this stage, a debtor doesn’t have any arrears. It’s a necessary step to motivate debtors to fulfill their loan obligations.

Actions

  • selection of the communication type (calls, text messages, or ‘no action’) determined by the amount of debt and pre-delinquency score,
  • automated emails, robocalls and text messages, 
  • ‘Welcome Call’ functionality for communication with new customers,
  • formation of call lists (clients to be called) and exclusion lists (clients excluded from call lists).
  1. Soft-collection stage

When a small delay has already arisen, bank officers take the “soft” measures of debtors. In 90% of cases, delays are eliminated at this stage.

Actions: robocalls, emails, and letters reminding debtors of the payment deadline and offering credit management options. 

  1. Hard-collection stage

At this stage, bank officers meet with the debtor personally.

Actions: the system directs the case to a specific bank officer who chooses the proper action. Debt collection software at this stage includes functionality for personal meetings with debtors.

  1. Collection agencies

If, despite all warnings, the debt is not repaid, it is turned over to a collection agency. 

Actions: the system combines loans into one package and distributes it among collection agencies. The program analyzes agencies’ effectiveness and decides which debts to transfer to them in the future.

  1. Legal collection stage

After a certain period of time, the collection agency files a lawsuit.

Actions: preparation of a set of documents, information exchange, distribution of debts among collection agencies.

Key Features of Software for Debt Management

  • Daily updates on debt indicators
  • Required dashboards for collection managers
  • SMS and email notifications 
  • Debt collection reminder templates
  • Third-party systems integration
  • Debt collection processes automation
  • Customer Information File management
  • Data input based on communication results
  • Communication history preview
  • Contract data preview
  • Loan amortization schedule preview
  • Debt estimate
  • Adding and activation of new services
  • Arranging and editing of branch-based meetings
  • History of adding and activating services
  • Sampling for data analysis
  • Batch updating

Have questions? Get in touch!