The results are intended to give ConServe, and our valued Clients and prospective business partners, insight into how their peers manage their portfolio of receivables, and to inform the decision makers on methods to stay competitive in today’s economy. These survey findings can provide financial institutions with methods to reduce expenses and increase revenue by implementing efficiencies to stay competitive, while improving collection efforts.

The number of agencies institutions currently utilize:

More than 50% of the respondents indicated that they currently use three or more agencies. We have discovered that many financial institutions are relying on proven relationships with fewer (but higher performing) partners to deliver better results. By consolidating your business with one or two of your top-performing collection agencies, you are guaranteed to increase the percentage you recover for every dollar you spend. Another way to streamline the process is to place your accounts within 6-12 months to optimize collection results. It only makes sense to move accounts to your top-performing partners to begin yielding a higher return more quickly.

Sharing a monthly or quarterly collection agency evaluation/score card:

An outstanding 91% of respondents indicated that they do not currently share an evaluation or score card with their agencies.

Financial institutions that require their agencies to supply monthly dashboards are able to proactively monitor established goals and KPIs. This consistent reporting will allow you to recap the year’s successes and identify improvements needed. With the reporting you receive from your agencies you can then create a score card that will allow you to assess your agency partners against each other, allowing you to evaluate their return on investment and the overall value they bring to your organization.

Placing accounts with collection agencies that produce higher recovery rates:

A majority of those we surveyed, 57%, place more accounts with collection agencies that produce higher recovery rates. One respondent said, “We started doing this approximately four years ago and has yielded higher returns.”

By consolidating your business with one or two of your top-performing collection agencies, you will immediately see better results, because that is what they are already delivering. You are guaranteed to increase the percentage you recover for every dollar you spend. It is an instant return on your investment, and you can start recovering more right away.

What the best performing collection agencies do better than any other agency:

67% of respondents indicated that their best agencies ensure compliance better than any other agency, followed by 64% indicating that their top agencies deliver exceptional customer service.

These results are not surprising. In such a heavily regulated industry, collection agencies need to prioritize compliance and data security, not only to protect their company, but also to protect your consumers and ultimately you – the originating creditor.

Amidst a dynamic industry that emphasizes compliance with regulations and intricate data security systems, institutions are faced with a unique set of challenges. As the spotlight on new rules and regulations regarding debt collections and accountability and documentation continues to grow, the burden of protection shifts. Security breaches and their aftermath are costly: The price tag includes notification of affected individuals, investigation, remediation, credit monitoring, and legal expenses – not to mention the intangible cost of branding and reputational damage.

Accessing Online Portals:

41% of respondents indicated they use their agency’s portals on a monthly basis, while 32% use them weekly, followed by 16% using portals on a daily basis.

Many financial institutions prefer their agencies offer 24/7 self-service options that allow them to manage their accounts on their own terms. In the financial services industry, dedicated secure web portals have become the vehicle of choice for customers to place new accounts, oversee existing accounts, make changes and conduct transactions, upload and share documents, and download real-time reports and other helpful resources. Ensuring your agencies offer a robust portal with regular training will be fundamental to successfully managing your collections portfolio.

Conclusion:

When the time comes to implement or augment your third-party collections strategy, financial institutions should focus on partnering with debt collection agencies that focus on compliance, customer service, performance strategies, and maintaining a robust and secure Client Web Portal.

Contact us today to learn how ConServe can become an extension of your institution and begin helping your consumers take back control of their finances.

_{This online survey of 96 financial institution leaders was conducted between October 27 – November 4, 2022.}