Jonathan Barkley

Delinquency and collections are an inevitable part of the lending business, especially as we head into an economic future dominated by inflation and high interest rates. Delinquent accounts present cash flow and many other challenges for an institution, and the process of recovering those funds can be time-consuming, expensive, and inefficient if you don’t have the right tools in place.

Collecting on delinquent accounts is a time-consuming challenge for many financial institutions. The tasks involved are often tedious for internal employees using manual (vs. automated) processes and can lead to a decrease in productivity for your team. Taking advantage of outsourced collection services can be a more efficient, cost-effective option if your institution is striving to reduce delinquencies and the time employees dedicate to the collections process.

As delinquencies begin to rise, your institution may be evaluating your internal operations and expenses to help you determine potential costs and impacts of scaling your collections department, compared to outsourcing one or more aspects of your operation to a third party. As you evaluate your collections operation, here are seven questions to ask yourself and your team to determine what option best fits your institution’s needs. 1. What is your team’s impact at various collection stages?