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The Benefits of Automating Collections With Digital Solutions

August 29, 2023

We've all heard how automation is taking over the world — and it's becoming a key aspect of digital transformation in every industry, including collections.

Automation involves using digital technologies to replace manual labor by creating reproducible processes and workflows. Offering automated collection services can help you modernize your collections agency, boosting efficiency and customer engagement.

6 Benefits of Digital Solutions for Automating Collections

Most people still prefer interacting with human customer service reps to machines, so why are so many companies shifting toward automating collections processes? The answer is simpler than you may think. 

When implemented alongside manual systems and processes, software that automates these processes, whether traditionally or using automated technologies like artificial intelligence (AI) and machine learning (ML), can augment human workers by streamlining their workflows and enabling them to focus on what really matters — your customers. 

Here are the six biggest benefits of automating collections processes.

1. Greater Flexibility

Providing more payment options to your customers makes it easier for people to keep up with payments. However, manually processing payments is complicated when you're constantly switching between different payment types. 

Automated collections solutions like KUBRA EZ-PAY® enable you to accept many different forms of one-time payments, including:

  • Credit cards
  • Debit cards
  • Apple Pay and Google Pay
  • PayPal
  • Venmo
  • ACH

KUBRA can also accommodate paper billing. Our KUBRA iMail™ solution provides accurate, reliable paper billing for customers and businesses that still prefer print communications.

2. Enhanced Efficiency

It's difficult to overstate the true impact of automation on collections efficiency. Automated programs cut out the menial jobs that often cause process bottlenecks, freeing your staff to focus on more urgent and critical tasks. And greater efficiency means higher profits — with manual tasks requiring less time, your employees can get more done in the day and increase your revenue opportunities. 

3. Better Organization

An automated solution streamlines data management by eliminating manual processes. You can easily track customer payments and monitor high-risk individuals to ensure they pay on time.

Accounting also becomes much simpler with automated collections, as all your payments get processed digitally. Your accounting department can save valuable time while reducing the risk of human error.

4. Improved Cash Flow

Automating collections processes eliminates the need to wait for manual payments to come in, freeing up incoming cash right away. You have the freedom to reinvest that income back into your business however you see fit.

5. Fewer Late and Failed Payments

Given how much we juggle in our lives, it's easy to forget about upcoming payments. Many automated collections solutions offer notification features that send personalized reminders to your customers to alert them to payment due dates. 

Streamlined self-service portals and automated processing also make it easier for customers to make last-minute payments if they forget or have trouble securing funds on time. 

6. Stronger Customer Relationships

The collections industry may seem like a surprising place to prioritize the customer relationship, but providing excellent customer service is an essential part of the business. Automated solutions help enhance the customer relationship by dramatically reducing the time it takes to process payments, encouraging customers to continue working with you.

Plus, features like personalized messaging and mobile apps help your customers feel more connected with your brand. And when customers are more comfortable with your brand, they're more likely to cooperate.

Omni-Channel vs. Multi-Channel Collections Solutions

If you plan to implement a digital solution into your collection agency, it's important to be strategic about how you go about the process. You want to opt for an omni-channel approach rather than a multi-channel one for the best results.

A multi-channel approach is how most companies would interact with their customers until very recently. It simply involves offering your customers several different communication channels, usually from disparate sources. While it works for engaging smaller customer bases, it becomes less effective as your company grows.

An omni-channel customer experience is one that feels seamless — your customers should be able to expect the same experience no matter which channels they use to engage with you. 

The right vendor will provide an omni-channel solution that covers every part of the collections process, from billing and payments to customer communications, and even a mobile app. 

How KUBRA Can Help

If your company is considering automating collections, KUBRA's cloud-based e-billing and self-service payment software is a standout solution. Here are some of our most beneficial features for the collections industry.

Mobile App Solutions

Smartphone usage has expanded tremendously over the past decade, and it's only going to increase over the next. Mobile apps help you meet your customers where they are and stay in contact with them while they're on the go. 

Smartphone apps operate on a self-service model, which gives customers a sense of agency over: 

  • Managing their account information
  • Making payments on the go
  • Checking their account balances
  • Viewing payment history 
  • Contacting customer support

Providing this kind of convenient user experience through a KUBRA mobile app is an excellent way to boost collection rates and reduce delinquent payments. 

Automated Notifications

Although debt collection differs from most other customer-facing industries, prioritizing the customer experience can help you make everyone's lives easier and improve your collection rates.

Automated collection reminders help keep your customers informed and engaged, reducing the chances that they'll miss their payments. With KUBRA's Notifi® Alerts and Preference Management, customers can set their own communication preferences to receive as many or as few notifications as they would like.

Plus, the ability to personalize your messaging to each customer helps you meet the ever-evolving customer expectations of today. According to a McKinsey study, 71% of consumers expect companies to personalize service to their unique preferences, and 76% experience frustrations when it doesn't happen. 

Reliable Mail Billing

Just because everything's going digital doesn't mean that physical bills are going anywhere. At KUBRA, we integrate our mail production and delivery service with our digital solutions to create a seamless customer experience. 

Our reliable mailing systems can help collections agencies shorten lead times and improve billing accuracy. Plus, the intuitive self-service client portal enables you to review, modify and manage documents throughout the process, providing maximum flexibility.

Increase Collection Rates With Automated Systems From KUBRA

If you need a modern solution for your collections company, KUBRA has the technology to help you. Our mission is to improve the customer experience in every industry, from utilities to collections — and our software solutions enable us to do just that. Our software is PCI-compliant and compatible with a wide range of programs, so you can have peace of mind knowing your solution will fit cleanly into your business.

Start experiencing better with KUBRA. Contact us today for more information or to request a live demo of our automated debt collection solutions.


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