While managing losses continues to be the priority and main objective of
collections groups (as it is their reason for existing), it is no longer
the only primary focus.
Regulatory compliance and customer experience are now always front of mind and will continue to be balanced as a main
objective for all organizations, which creates a landscape drastically
different than a decade ago. This is not to indicate compliance and customer
experience was previously not important, but the intensity of focus and
scrutiny was undoubtedly less than it is today.
So what has really changed? Primarily, it has been a shift in the burden
of proof when it comes to compliance. Previously, a lack of evidence indicating
compliance violations was typically sufficient to achieve positive marks
with regulators. However, with the creation of the CFPB and a renewed/enhanced
focus on effective Compliance Management Systems, organizations are now
expected to be able to prove (at any time) that they are in compliance
with all regulatory requirements –– a very different proposition
than in the past.
What is Regulatory Compliance and Customer Experience?
Regulatory compliance and customer experience means complying with (and
proving compliance with at all times) all applicable state and federal
laws by focusing on having the right
procedures in place, effective
quality control (ensuring procedures are being followed correctly and consistently),
training employees on the right things, and ensuring that consumers
have a
positive and consistent experience when they interact with your organization – among many other things.
This also means ensuring that your vendors are as committed to compliance
as you are – and having the proper oversight in place to
know at all times that they are in compliance with all requirements.
So if this requirement to proactively prove regulatory compliance is a
relatively new, how do businesses ensure proof exists with every consumer
interaction?
That’s where workflow management technology can be one of your greatest
resources.
The Intersection Collections & Workflow Management
Workflow management technology provides businesses with a way of automating
repetitive processes (either the full process or a part). It allows for
structure to provide process consistency, tools to create embedded preventive
controls, and guidance to ensure required information is captured in the
system throughout the process. These benefits all combine to create an
environment in which proving procedures were followed can be easily evidenced
by utilizing data in the workflow management system. Lastly, and perhaps
most importantly, it is
flexible, allowing the business to alter the process as needs or requirements demand
– rather than leaning on IT resources which can often be expensive
and time consuming.
Workflow management technology can also help ensure agents are either operating
within their authority, or directing consumers to the correct contact
within your organization (e.g. debt settlement negotiations). Automation
increases productivity as well, allowing agents to spend more time performing
tasks according to their skills or workload capability – and allowing
managers to have more intelligence as to where and how to assign work out.
Ultimately, investing the time in effective workflow management can allow
businesses to make most effective use of their agents and free up resources
currently earmarked for manual quality control and monitoring process
to focus on handling more strategic objectives. And of course, effective
workflow management can reduce the risk of regulatory fines and scrutiny.
Where Workflow Management Is Most Effective
Many processes can be enhanced by utilizing workflow management. Workflow
management often requires organizations to simplify processes in order
to put structure in place – which in most cases proves to be beneficial.
Examples of processes where workflow management can be effective for collections include:
- Cease and desist
- Complaints and disputes
- SCRA benefits requests
- Account treatments/placements
- Settlement negotiations
- Deceased
- Bankruptcy
- Litigation
- Repossession
- Foreclosure
Conclusion
In summary, workflow management:
- Enables more efficient and effective compliance (and proof of compliance)
with regulatory requirements and internal policies
- Allows for the business to be in control of making changes to process –
rather than relying on IT
- Gives agents greater structure, increasing consistency productivity
- Frees up resources focused on manual quality control activities
For organizations that do not yet have workflow management, they can start
by identifying where it would add value and conducting a cost-benefit
analysis to determine if they can fund the initiative by achieving longer-term
savings and efficiencies. For those that already have tools, now is a
great time to review how they are being used and ensure they are being
used as effectively and efficiently as possible.
For more information regarding the role of workflow management in collections,
or to learn how we have helped implement workflow management for our clients,
contact Bridgeforce online or call (610) 616-3106.