The Evolution of agency and in-house Debt Collection Software: From Manual Processes to Cloud Solutions

The early days of debt collection were a path filled with blisters and stones, The collectors were involved in working with physical files, working manually with pen and paper, using the landline to contact debtors, etc. 

Physical labor: Involved processes like, sending manual reminders via letters, manual data entry, calling, etc. 

Prone to errors: as the process like manual communication and data entry are involved, the process had a high risk of missing debtor, reminder, mistakes in data, calculation or sending a reminder accidently  

Time-consuming: as the human labor was more in the process, the collection process in early days took major time of the agencies  

Manual skip tracing: Skip tracing was a hectic task in the era because it was done manually, took more effort to trace the people because of changing address etc. 

Field visits: Included manual field visits, these were exhausting and time-consuming process for the agencies. 

Compliant issues: During the time of manual debt collection, while dealing with the debtors, human intervention caused failures in adhering to law and regulations. 

Early debt collection solutions 

This can be viewed as the first step of evolution in debt collection, By the introduction of early debt collection solutions, they managed to automate some aspects of collection, with limited functionality. 

Starting the revolution: By the introduction of IT to the world of debt collection, it started the change in the industry. 

Required significant investment in IT: Early debt collection solutions required huge investments in IT as it was on-premises solutions that completely relied on the agency for maintenance, storage, collections, hardware etc. 

Collaboration challenges: The functionality was limited to the individual level, so raised a question about the collaboration of the team. 

Restrictions on flexibility and scalability: Due to the limitation in automation and updating it lacked the flexibility and scalability that was necessary for the development, so for the agencies, it was difficult to keep up with growing business. 

Emergence of integrated collection systems 

By the introduction of software solutions for debt collection, the demand increased for more sophisticated solutions. These software solutions were automated and provided better tools for communication, better workflow management and analysis. 

Integration: Integrated and centralized debt collection software solutions helped the agency to assign accounts to the collectors, based on pre-defined criteria. It also helped with tracking accounts and generating reports.  

Better communication: Integrated debt collection software solutions came with the facility for integrating the platform like SMS and email, so the efficiency of collection improved as well as it allowed debtors to connect better with the agency, through the preferred platform. 

Streamlining: Provided better streaming of collection process, using integration and automation technology.  

Data-driven approach: Helped the agencies to make better decisions based on data and accurate analytical methods. 

Introduction of cloud-based in-house debt collection software 

By Introduction of cloud-based in-house debt collection software, the industry came across one of the best turning points. This debt collection software enables you to collect debts internally, without the intervention of a third party. Here are some features of in-house debt collection solution. 

Scalability: The cloud-based debt collection and management software is flexible in that it can grow according to your agency’s growth. 

Accessibility: With an internet connection, you and your team will be able to work anywhere around the world. 

Low investment on IT: As there is no additional investment on physical entities of IT is needed, there is no need of huge investments for cloud-based in-house debt collection software 

Seamless integration: Ensures integration with varieties of payment gateways, communication channels, accounts, data, etc. To help the debt collection and fuel your success. 

Better compliance: The credit debt collection agency software comes with auto compliance features, which will automatically update according to the country and industry's changing laws of the country and industry.  

Cost efficiency: In-house debt collection software for small businesses is budget friendly, as you don't need to pay a huge amount of capital to collection agencies to collect debts for you. It can also scale with your business. 

User-friendliness: The user-friendly interface of credit debt collection agency software allows the customers to navigate easily through the simple and easy dashboards, which eases the work and increases the chances of repayment. 

Real-time reporting: allows you to get the reports of your in-house collections ready on time for better evaluation and planning. 

In-house compliance management tools: in-house b2b debt collection software comes with inbuilt compliance management tools which help you stay adhered to law in industry.  

Cloud based solutions: cloud based in-house debt collection software provides you with the best solutions like scalability, accessibility, enhanced security, etc. for making it the best In-house debt collection software. 

Conclusion 

The evolution of agency, debt collection agency solution, and in-house debt collection software from manual processes to cloud solutions have come a long way by evolving according to the market demand, in the journey, what once was a labor-intensive, and error-prone process have become an automated data driven operation. 

As the technology continue to advance and evolve, the debt collection solutions, and tools must also improve and adapt according to that, the future of debt collection is packed with innovations, which empowers the collections to perform the best and to the betterment of the respective organizations.