Collection & Recovery: Let’s Quickly Count the Benefits of BPMS in Pandemic-hit Banking
Small and mid-sized Banks and NBFCs have been badly hit by the Coronavirus pandemic. Despite the several measures taken by the banking regulators, financiers, and other government agencies their plight is still continued. The new normal has pressed a long pause on their business as usual.
Besides the sharp drop in the overall business transactions, lenders continue to suffer halted business growth due to the shocks induced by the startling global economy in new normal. Moreover, those with legacy IT infrastructure and ‘not fully digitized’ business processes are likely to bear more this ‘unbearable punch’. When taking a closer look into the current challenges’ faced by lenders, following challenges are clearly visible:
- Low scalability in the sluggish economy
- Longer servicing/response time due to manual processing
- Lesser Market reach (unable to scale operations in remote areas)
- No system in place to track and monitor request processing Turnaround
- Inability to handle to peak loads and frequent bottlenecking
- Cumbersome web of multiple systems/touch points
What various analyst firms are opined of
A recent report published by World Retail Banking Report 2020, highlights the need for digital transformation, it says “banks will find it up to two times easier to increase operating profits, unlock new sources of value, and improve operational efficiencies.”
On the other hand, PWC in its reports titled – ‘Building the NBFCs of the Future’ says that ‘Collections functions have historically focused on maximum recovery of the loan outstanding, with very little focus on maintaining customer experience. Such lack of focus may result in irreversible damage to any future customer lifetime value, and can have potential repercussions on the NBFCs’ brand image’.
Role of Servosys BPMS Product Suites:
Based on these aspects – efficient collection and recovery systems and digital transformation are the need of the hour, and Servosys BPMS Product Suites assumes the prominent relevance based on its ability to deliver on these two aspects. It also offers the benefits such as:
- Automation of the collection process in a truly end-to-end manner and thereby sharply reducing the Turnaround
- Elimination of the need for higher degree of manual intervention as it implements Straight-through-processing and thereby reducing the manpower
- Providing the Mobile/Tab- based operations capability that makes the collection agents stay connected with their backend offices and serve customers even from the remote area.
- Providing the features such as quick scaling up, easy integration with existing IT systems like Core System, LMS, APIs without requiring extra digital infrastructure, etc ensures early return on
- Providing features such as higher integration capability, Mobile/Tab-based accessibility, connected front-to-back offices operations, customizable routing rule engine, etc. further ensure unhindered collection and recovery operations in the new