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Is Your Credit Union Balancing Increased Lending with the Resulting Increased Bad Debt? Here is the Best of Both Worlds…

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BY KEN HAYES

Is Your Credit Union Balancing Increased Lending with the Resulting Increased Bad Debt? Here is the Best of Both Worlds…

Does it sometimes feel like your credit union is performing a tightrope act when it comes to outstanding loan collections? If so, these payment recovery strategies will get you back into equilibrium without alienating your members. And you don’t even have to hold the balancing pole yourself if you don’t want to.

As the mandate to lend and grow comes forth, we struggle with revenue assurance at all phases of the member credit-to-cash cycle.

Typically, opening the lending floodgates has meant noticeable recovery decline, but this is no longer a necessary evil. By adjusting contact strategy, coding customer responses and analyzing results, many financial and operational benefits become available.

The following is a way of treating members with respect and concern that decreases both Days Sales Outstanding (DSO) and member complaints. Here’s the kicker: it can be accomplished both as first-party treatment (contacting members as yourself through in-house recovery) or via a third-party collection agency, where the impact is heightened and execution becomes essential.

OVERVIEW & BENEFITS:

Late-paying members, from overdrafts to mortgage payments, appreciate being asked what may have contributed to their payment delay. By posing the right questions, coding member responses and analyzing results, the following benefits abound:

  • Extremely high CSAT & NPS
  • Heightened likelihood of cure and mitigation
  • Interestingly higher pay-up when compared to payment-focused contacts
  • Invaluable compliance proof and operational feedback

This content is for CU BUSINESS eMagazine , Special Deal: 2 websites , and NEW! The Leadership Team Builder Group Subscription members only.
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