Sacco Tech Solutions                                                                                                    Â
Discard ineffective old methods
Most Saccos have found themselves at the point where they are glued to their outdated processes, or better termed, ancient technology. They often justify this situation with the phrase, “this is our way of doing things, a ‘status quo’ better defined “when it’s easier to do nothing than it is to do anything.
This leaves them with old techniques to collect the debt, with little success owing to a lengthy process, which delays the entire debt recovery journey. Think of the new documentation process, contact tracing, and physical follow-ups. Each step can take days or weeks, depending on the requirements.
In such a scenario, with available data supplied for collection purposes, it begins by looking up the debtor’s residence and job information on the application or other paperwork.
Secondly, this may involve constant communication with the debtor, who, at some point, may have completely forgotten about the loan, have no cash, or even do not plan to repay. In that case, the debt collector must be persistent in contacting them to work out ways to resolve the matter.
Debt collectors may rely on other means to predict defaults. Humans work in configured patterns, and through analytics, they may be able to tell who is most likely to default or pay back a debt. It is agreeable that it picks up on any notable change in them.
The repayment option is another plague in haunting many Saccos. Most people are more likely to settle for payment when presented with an array of options. Leveraging on a range of digital payment plans can be a solution, especially with the younger generations.
Enshrined in the ‘status quo’ is a lack of review of policy plans in line with laws governing lending and borrowing. It is possible to do much better, as a Sacco, with new policies, processes, technology, tools, management, data, and information,
Lastly, when every effort proves futile, they may ask for help. And that is when the biggest challenge presents itself. Every service provider plays their cards well, just to come in. It is a tedious exercise.
It is undeniably true that collecting a debt is, in itself, a difficult task. But these mechanisms, alone, are not effective.
The herculean task is scribbling an effective debt collection strategy to do away with bad debts. The good news is all these functions can be performed professionally online, without any physical interactions.
Effective debt collection strategy
With an adequate digital strategy in place, automation of manual tasks is a top priority. It is possible to embrace more tactful strategies in tracking overdue payments.
Welcome to TERA COLLECT—a reliable service in this era of the ‘internet of things.’
Automated intelligent recovery has gained so much traction among the common masses due to the solutions’ speed, convenience, and flexibility.
For instance, a software solution engineered with new-age techniques to help a financial institution collects debts. NLS Tech Solutions does just the same, but with a different approach—a debt recovery solution.
Tera Collect seamlessly automates, follows, collects, reports, and solves outstanding debts professionally, with minimal human effort.
Orchestrating all processes from a central system, the module follows a digital debt management process that is comprehensive and secure, taking debt collection to another level.
This means significant integration with the existing systems to transform traditional debt collection models— a new face of the debt recovery process in the Sacco industry.
A well-organized effectively managed, and thoroughly thought-out process makes the recovery cycle seamless and quick, closely managing delinquent Sacco members’ financial data.
Here is a list of some surprisingly simple techniques the solution is packed with to increase your collections:
- Prompts quick alerts
- Timely reports
- Integrates with Core banking system, Dialer, and any third-party applications effortlessly.
- Synchronizes all customer data from the Core banking system or card System
- Powered with Machine learning models to improve efficiency
Saccos’ populations are overwhelmingly huge; if a Sacco cleaves along automation lines, it stands to benefit the most from Tera Collect.
A good debt recovery tip:
Aim to retain the Sacco members, with the sole objective of recovering that debt.
What Next?
Find more information on TERA COLLECT at www.nlsbanking.com or contact Tel: +254 20 263 2768
Email: [email protected].
