Collections matters more now than ever
The pressure of funding loan volume will continue, and financial institutions across the country will continue their quest in securing loan volume that will satisfy their growth goals. Marketing departments will collaborate with their senior management teams in how best to attract loans that they hope will deliver the retail services per household numbers they are looking for.
We all do it. We focus on growth goals and when that goal is achieved, (or not) we move on to the next conquest marketing program. As you know, it isn’t just about the growth. Growth has consequences; how you grow creates risk. However, as an industry we are far too slow to address the real issue and as per usual, the risk is noticed far too late in the process for us to avoid unnecessary losses. Loan growth creates a servicing need but none greater than in the collection area.
The collections department and the people that work there do more for your financial institution’s loan performance than any other department. Frequent phone contact, not only emails, letters and texts are key for your loan portfolio performance.
Not only do collectors keep the cash flowing and save you from losses, these individuals are a critical extension of your customer service. They do more for your brand loyalty than anyone in your building. Considering hiring staff specifically to “recover” past losses. At the very least, prior to any growth initiative, survey your support team. Can they comfortably handle 300 accounts or are they struggling to keep up with 500?