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How Saccos can improve Debt Collection Strategies

3 min read

Most Saccos have been enslaved to their antiquated processes, or, to put it another way, antiquated technology. They frequently excuse this scenario by saying, “This is our way of doing things, a’status quo’ better described “when it’s easier to do nothing than it is to do anything.”

This leaves them with antiquated debt collection approaches, with minimal success due to a protracted process that slows the overall debt recovery path. Consider the new documentation method, as well as contact tracing and physical follow-ups. Depending on the needs, each phase can take days or weeks.

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.

Second, this may entail frequent communication with the debtor, who may have completely forgotten about the loan at some time, have no funds, or even do not want to return. In that instance, the debt collector must be persistent in contacting them in order to figure out a solution.
Other methods of predicting defaults may be used by debt collectors. Humans operate in predefined patterns, and analytics may be able to predict who is most likely to default or repay a debt. It is convenient that it detects any significant change in them.

Another scourge that plagues many Saccos is the repayment option. When given with a variety of options, most people are more likely to accept money. Using a variety of digital payment options can be a solution, especially for younger generations.

The status quo’ includes a failure to assess policy plans in accordance with lending and borrowing rules. As a Sacco, you can perform much better with modern rules, processes, technology, tools, management, data, and information.

Finally, if all efforts are useless, they may seek assistance. And this is when the most difficult problem arises. Just to get in, every service provider plays their cards skillfully. It’s a time-consuming task.

It is definitely true that collecting a debt is a challenging process in and of itself. However, these systems are ineffective on their own.

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

Automation of manual processes is a major priority when a proper digital strategy is in place. It is possible to use more subtle methods of tracking missed payments.
TERA COLLECT is a dependable service in this era of the ‘internet of things.’

Because of the solutions’ speed, ease, and adaptability, automated intelligent recovery has achieved widespread popularity among the general public.

Because of the solutions’ speed, ease, and adaptability, automated intelligent recovery has achieved widespread popularity among the general public.

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.

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