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How Does Call Center Solution Reduce NPA for Collection Agencies?

Call Center Solution February 17, 2023

The easy availability of loans on different items has attracted more people to purchase more things based on the EMI structure. This indeed creates a win win situation for both debtor and lender because the debtor can avail anything and everything they want such as a car, electric appliances, luxury items, and even an abroad trip. On the other hand, lenders can use their money to contribute to the economy and also run the cycle of finance and supply chain.

Along with creating a healthy financial cycle for debtors and lenders, it also creates some challenges for both parties. The lenders, whether it is a bank or an NBFC (Non Banking Financial Company), need to work on the recovery part. That means they need to put a whole force of manpower to give reminders to pay EMIs, send collection agents to collect EMI money, and even predict defaulters to take the required actions. As this is a hectic job, banks and non banking financial companies often outsource this job to collection agencies.

The collection agencies usually have a skillful team that is trained for the job of EMI collection from debtors. They also have the required infrastructure such as call center software, NBFC software, CRM system, etc. to increase collection and help banks and NBFCs stay profitable. While running this business, it is often witnessed that along with people paying their EMIs on time, there are also people that do not pay EMIs. Moreover, there can be multiple assets and products on which banks and NBFCs give EMI based loans and lending facilities. Some of the products may work better and some don’t. Thus, collection agencies have the job of identifying and reducing these nonperforming assets (NPAs) along with the increasing collection.

The analytical skills along with financial forecasting adroitness definitely help businesses here to identify Non-performing assets. Moreover, collection agencies can also use a call center solution with a payment utility for collection or an NBFC software solution.

Before we dig deeper to learn how these solutions help in increasing collection and profit ratio by reducing NPAs, let’s first explore what this software does.

What is a call center solution for collection agencies?

You all must know about a standard call center software solution that is used by different industry verticals to run inbound, outbound, and/ or blended campaigns. The software for collection agencies would also have all the features of the standard system. In addition to that to run collection campaigns more effectively, it would also have additional features or modules specifically designed by the provider company. These modules and add-ons can be exclusively available only from that company and not elsewhere or they can work differently if provided by different companies. Some of the popular modules integrated specifically for collection agencies are IVR for collection, payment utility for collection, disposition bucket for collection, Soundboard Avatars for collection, and more. A provider may provide all these or some of these modules to help collection agencies increase collection and reduce NPA.

What is an NBFC software solution?

It is a complete and universal system that is designed not only to run collection campaigns but to manage each stage of the loan management cycle. It will have several intricate algorithm based features and modules that enable a collection agency to handle all aspects of managing loans and lending cycles. Usually, NBFC software is not used by collection agencies. It is used by banks and non banking financial companies. Only features of call center software with collection modules are used by collection agencies.

How does a call center solution for collection agencies reduce NPA?

Now that you understand the different types of software solutions used by collection agencies, let’s explore in detail how these solutions help collection agencies in reducing NPAs and increasing collection.

Efficient recovery

The first and foremost way to reduce NPA and increase collection is to focus on more efficient recovery. The exclusively designed call center solution for collection agencies is a great tool for supporting collection campaigns. It helps in automating several tasks, defining the complete collection cycle, bifurcating on-time payers and defaulters, classifying borrowers based on different groups in buckets, and more. All these features help in running collection campaigns more efficiently. Let’s understand how.

The IVR for collection can run a self serving campaign to give all the required details to the caller related to their next EMI, number of due EMIs, interest rate, notice period, and other details. The NBFC software can also integrate outbound IVR for collection, which will send an outbound voice message to the borrowers and play reminders multiple times. These IVR messages can be interactive and they can play multiple options as well to let customers give their comments on whether they will pay EMI on time or not. If yes, then on which date it will be paid? Whether the customer needs collection service at the doorstep or not and other details can be fetched by this feature. This helps to increase collection so the overall nonperforming assets can be controlled and reduced.

Along with an IVR for collection, this software will also have a payment utility for collection. This is an exclusive feature available to users of Elision’s call center software, DialShree. The first feature of this utility is filtering and removing the number of customers that have already paid EMIs from the calling list. This helps in saving time for agents so it can be used to focus on customers that have not yet paid for assets and can contribute to increasing NPAs. This feature can filter numbers based on different criteria to make collection campaigns more efficient. There are several other features that help in increasing collection and ultimately contribute to reducing NPAs.

This software can also be integrated with an NBFC software solution.

Show tangible data to classify NPAs

An exclusively designed call center solution for collection agencies further provides insightful data information for reports. These reports and data segmented under different criteria in all reports give insightful and actionable information to collection agencies to identify major nonperforming assets and assets that can soon fall under the category of NPAs. Along with this information, it also provides multiple other forms of data and values of KPIs, which collection agencies can use to classify assets, customers, borrowers, and more.

Using this tangible data, collection agencies can project their views and data to the banks and NBFCs for which they operate to let them take legal or other strategic steps to increase collection. Moreover, they can design more effective campaigns to reduce NPAs by increasing collection.

Concluding notes

In a nutshell, the NBFC software, or a system for collection agencies with payment utility for collection, directly and indirectly, contributes to the increasing collection and reduce nonperforming assets. There are several other advantages of these tools for any collection agencies, which is why they have become a must have for banks, NBFCs, and collection agencies.

We offer different solutions to benefit the diversified jobs and campaigns in this industry. We have exclusively developed an omnichannel contact center solution with different features mentioned in this article and more. This tool can help in boosting collection, simplify collection jobs, and reduce the total number of NPAs. If you are interested in knowing more about it, get in touch with us NOW!

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