The global debt collection software market is expected to reach $5.6 billion by 2026. For this reason debt collection industry stakeholders regularly monitor emerging trends and insights. With industry practices, compliance demands, and debt collection technologies constantly evolving, it’s important to look ahead to the future. Here we outline the biggest emerging trends in debt collection for the coming year. 

1. Digitized Collection Strategies

Digitized collection strategies will continue to be the leading debt collection trend emerging in 2020. More advanced software will rise to the top, segregating defaulting consumers based on more precise data points, including credit history and the percentage of their loan which remains unpaid. The most advanced debt collection software and debt recovery software will use machine learning to personalize the debt recovery process, and automated communications will become more precise, personal, and yield great rewards.

Fresh perspectives are the key to developing an effective debt collection strategy. The industry faces an ever-changing strategic landscape, with changing policies and regulations emerging from all sides. But one truth remains: when the customer is empowered, through simple, instant and secure communications, which are customized to their financial and personal situation, the debt collection process becomes seamless and recovery rates are improved.  So how can you empower customers during the debt collection process?

Empowerment Through Communication

Collectors have found that customers gain a sense of empowerment when they can choose the contact channel through which they’re approached about delinquent debt. If they can take charge of their personal delinquency solution, and the timing and pace of repayments, they’re more likely to give you the money you’re owed. Gone are the days of call centres.

The millennial generation is one of the least financially resilient groups in the UK. 7.8 million millennial do not have savings or investments in place to help them achieve their personal ambitions. Recent research from YouGov for KPMG has shown that 42% of millennials say that debt repayments form a significant portion of their outgoings, and one in five millennials spend over 60% of their income on the same day it enters their account. Millennials, as group of people, form a large consumer base, so what are the best strategies to employ when collecting debt from them?  

Contacting Millennials

The millennials are people born between 1981 and 1996. Though the traits of millennials differ by region, understanding how millennials communicate is the key to successful debt recovery from this demographic. This is a generation who grew up with the internet, they’re tech savvy and they enjoy receiving communication via channels they’re familiar with. Your focus should be a digital mind-set. Instead of sending letters and making phone calls, debt collection software that utilizes online messaging platforms, emails, WhatsApp and texts will reap greater rewards. Millennials can settle their debts using channels they’re familiar with, on their own time. You will experience greater success rates.

The success of a business is critically linked to its liquidity. And successful management of the debt you’re owed can be the core measure of your company’s solvency. Debt collection software and debt recovery software provide an opportunity for your businesses to manage and recover debt, thereby improving your cashflow – the undeniable lifeblood of your business. Here are the reasons that prove why you need debt collection software.  

1.   You’re wasting time

Automation stands behind so many thriving businesses. A fine-tuned automated collections process, which harnesses the power of advanced software, provides you with the tools to make critical decisions, formulate efficient responses and analyse your company’s weaknesses. While your employees spend hours building and inputting spreadsheets and making phone calls, instead you could enjoy the benefits of an automated collections process, which saves you time and saves you money. LATERAL manages your entire debt collection and debt recovery process - automated payments, arrears notifications, and the control of letters, calls and texts using omni-channel communications. As a result, valuable labour resources are freed up, and that saved time can be invested in building your company.  

There are many benefits to legal case management software. By harnessing the power of technology to run a legal practice more efficiently and effectively, it improves productivity, profitability and client satisfaction. Here we outline some of the many great benefits of legal case management software in more detail.

1. IT REDUCES HUMAN ERROR

Solid legal case management software reduces instances of human error, which can often have a negative impact on efficiency and communication. Important legal documents and notes are secure and organised, and will never again be discarded or misplaced. Legal case management software makes it easy to digitally retrieve legal files and add notes and data to important documents. Accessing files via the cloud means they can be retrieved remotely, anywhere, and at any time. This feature means employees can work from home or take meetings outside the office, whilst keeping the information they need at their fingertips. Working in the cloud is a great benefit for those who travel, as they can always stay productive and on top of their work. 

The debt collection and debt recovery practice is modernising the world over. But in the midst of so much change it’s important to not annoy your customers in the process. Here we offer up some tips about developing debt collection strategies that will boost your customer service reputation, not damage it:

OMNICHANNEL COMMUNICATIONS

Omni-channel communications are a great way to take an holistic approach to contacting customers who have outstanding debt.  Omni-channel communications are consistent, complementary and seamless, which means customers are much more likely to respond to you efforts favourably. Traditional communication methods of placing phone calls and writing letters are not only out of date, but consumers also often find them to be disruptive and annoying. Letters are also sometimes missed entirely, meaning debt is often left unpaid. Instead, through an innovative omni-channel approach, you switch up how you communicate.

In recent years the UK has seen a dramatic shift in favour of digital payment methods, and the use of cash has significantly declined. In 2007 63% of all transactions were made using cash. But today that stands at only 34%. UK Finance estimates if these trends continue in 15 years time cash will account for only 10% of all transactions. In fact a 2017 study by Forex Bonuses found the UK to be the third most cashless society in the world. But what are the benefits of a cashless economy for small businesses? And how can SME’s harness the potential of our burgeoning cashless society? 

WHAT ARE THE BENEFITS OF A CASHLESS ECONOMY?

Our decreasing reliance on cash can reap many benefits for business owners. The first benefit is an increase in security. New payment technologies will lead to safer payments, and businesses won’t have to leave cash on their premises, which can potentially make them vulnerable.  A recent industry survey estimated cash handling costs each British retailer £3,638 a year on average, adding up to a total national bill of £17.8 billion. Thereby highlighting another business argument for a cashless UK. Secondly, a cashless economy can lead to greater efficiency and productivity for businesses. And by the increased collection of digital data and card transaction histories, businesses can build better behavioural profiles on their customers, which is a strong asset.

The global debt collection solution market is predicted to grow from $2 billion in 2019 to more than $3 billion by the year 2025. Debt collection software is designed to manage and streamline the debt recovery process. The industry’s leading software is powered by machine learning and artificial intelligence, which streamlines and manages the debt collection process. But how exactly does Artificial Intelligence (AI) make debt collection smarter?

WHAT IS AI EXACTLY?

In its simplest terms, AI is intelligence exhibited by machines.

When describing AI, Huw Price, Professor of Philosophy at the University of Cambridge said, “the potential benefits of creating intelligence is huge” and it will “transform every aspect of our lives.” Similarly, Sundai Pichar, Google’s CEO, called it “one of the most important things humanity’s working on. It’s more profound than… electricity or fire.”

The automation of a company’s credit control process can provide them with a significant advantage over their manually-inclined competitors. Workflow automation not only establishes accurate debt chasing, but also can automatically notify appropriate personnel of impending deadlines and important dates. These procedures have a huge impact on credit control, and therefore cash flow.

AUTOMATION BENEFITS

One great benefit of credit control automation is how the software tightens and controls credit limits and overdue invoices. Labour costs are significantly reduced when the software steps in and eliminates the need for employees to carry out these tasks. There are many benefits of credit control automation, but here are our top five:

1.    The automation of the creation and delivery of letters or electronic communications around your ideal process.

2.    Automated generation and distribution of all credit control communications, which align with your company’s rules and procedures.

3.    Instant oversight – since the software monitors and enforces credit control procedures, it saves on valuable resources.

4.    Credit limit workflow automation processes, which mean all decision makers are consulted before key clients are communicated with or have their status changed.

5.    An improved company expense management process.

According to new research based on Pitchbook data released by London & Partners, and Innovate Finance, London has now overtaken New York in attracting the largest amount of fundraising deals for FinTech companies. The English capital’s FinTech sector attracted a total of 114 deals worth a record $2.1 billion in the first eight months of 2019. These figures further prove the strength of the United Kingdom’s thriving FinTech industry, which generates revenue of £6.6bn per year. But why does the UK stand at the top of the pile?

DISRUPTORS

There are estimated to be over 1,600 FinTech firms in the UK, and this is expected to more than double by 2030. When it comes to debt collection, FinTech debt collection companies, such as LATERAL, have revolutionised a formerly dated industry. And this is an important reason behind the UK’s winning position. By introducing vastly improved rent recovery rates and an improved business experience for both creditor and debtor as a whole, the debt recovery sector has continued to thrive.  

Another important statistic (released by The Department for International Trade in May of 2019) found that the majority of financial services CEOs in the UK (62%) believe that a focus on emerging technologies is “the number one driver that will separate high-performing firms from the rest”. And British digital tech companies are the most connected in Europe, “second only to Silicon Valley for international connections. 25% of entrepreneurs across the world report having a significant relationship with two or more entrepreneurs in London, compared to 33% for Silicon Valley”.

In 2008 only 12% of UK business were using cloud-based software. Yet now, only 11 years later, cloud computing has gone mainstream. Virtually all organizations (96%) use it in one way or another. Here we outline the variety of benefits that come from implementing cloud-based solutions to your business.

 1.     Scalability

Having a flexible approach to business operations is useful tactic. With cloud based computing your business can scale up, or scale down, to suit your changing circumstances. Cloud software is capable of scaling as the business grows, without needing to invest in additional expensive hardware to support that growth.

The debt recovery process is extremely important for any business. Bad debt can be devastating and have a huge impact on cash flow. Successful business need to harness a focused debt collection strategy, which helps them maximise their resources, reduce costs and save time. Here we outline some tips to maximise debt recovery efficiency:

1.    Collections Management

A comprehensive collection system is vital to keeping your company solvent. Advanced debt management systems, which include adaptable workflow generators, automated payment options, and decision engines, result in a more effective and customer-centred collections process. Recovery rates increase and costs are reduced.  

2.    Efficiently Monitor Unpaid Debt

It’s important for you to know when customers who’ve gone into arrears become solvent. The right debt collection strategy should focus on monitoring your debtor’s accounts, thereby ascertaining their ability to pay. If their financial situation has improved, you should be alerted to collect the unpaid debt.  

3.     Prioritise

Prioritization is an important part of any conversation around efficiency. And never is this more true than with debt collection. If you can identify those accounts with the highest payment potential, your collection efforts will improve. Lateral’s advanced decision engine tools gift you with a complete system, which prioritizes on your behalf, boosting your debt recovery efforts. 

So your firm has begun its search for attorney case management software. This is a decision which may have stemmed from a number of factors, and it’s not a decision to be taken lightly without research and an understanding of the specific needs of your firm. So you can be fully satisfied with your investment, here we offer some useful tips when searching for the best attorney case management software.

1.    Write Your Checklist of Features

A good starting point is to draft a list of features you believe your firm needs. It’s much better if you know what attorney case management software features you require, rather than software brands telling you what you need. Some common important features include: 

-       Automated document production and sending.

-       Document management.

-       Interest calculator.

-       Client reporting.

-       Cloud-based login from anywhere in the world.

-       Easy integrations via API.

-       Task and diary management.

-       The ability of the software to modify and grow with your firm.

In addition to drafting a list of features you believe are important to you, it can also be useful to prioritise them. This way you begin your search for the best attorney case management software with a clear idea of what your requirements are in terms of wants vs needs.

Economists estimate that UK SMEs are owed £2.3bn in outstanding payments. It’s a statistic that many business owners can relate to. Without the establishment of the right credit control processes, it’s very easy for late payments to have a large impact on business operations. And it’s certainly vital that your business gets paid on time. So what are the five most common credit control mistakes? And how can you avoid them?

1. You Don’t Chase Outstanding Invoices Efficiently

The average time large businesses wait for payment is between 53-55 days. And 20% of small and medium-sized businesses wait for more than 60 days to receive payment. This can have a huge impact on cashflow. So your business has to find effective and efficient ways to chase invoices. The credit control software engineered by LATERAL is designed to help business and organisations save on labour costs and boost their cash flow. Clients are given access to a raft of useful credit control tools, which help them effectively automate chasing invoices from their customers. LATERAL’S software also provides advanced insights, using artificial intelligence and machine learning.

2. You Fail to Check the Credit Ratings of New Customers

Of course customers are the lifeblood of your business, but those customers who fail to pay invoices, or are late with their payments, can have a negative impact on your cash flow. To reduce the risk of taking on customers who won’t pay, it may be prudent to carry out a full credit check – determining the behavioural past of any potential customer. If they have a strong credit rating they’re more likely to pay their invoices on time and be of benefit to your business.

The debt collections process has experienced a revolution in customer service in recent years. Technology has transformed an antagonistic pursuit into a cooperative one, which is consumer focused. Successful debt recovery requires a focus on customer experience. And here we outline ways in which you can improve customer experience as a means to streamline and optimize your collections operations.

1.    Keep Customers Updated

Communication should be at the forefront of all debt recovery.  And today people expect to be contacted via communication channels they’re familiar with. Digital-first customers inhabit an app-based world, and they want to address their delinquency in their own time. Gone are the days of calling customers who are past due; there are now much smarter and successful ways to communicate. LATERAL provides proactive notifications for collections, which enables its users to send payment reminders to customers across multiple channels – voice, text, email – so you can collect more debt, more easily.

2.    Be Clear Up Front

Outlining the terms of your agreement up front is a critical part of the process. When terms and conditions are written in small print, or VAT is not included in calculations, customers can become frustrated. By contrast if you can communicate clearly and quickly from the outset, levels of delinquency will significantly reduce.   

Case management solutions can help a legal firm manage their cases, their clients, and their business matters. Although case management solutions have been around for a while, many law firms are still failing to invest in them. But those that do see vast efficiency improvements, and enjoy multiple benefits in terms of running their case loads.

WHAT ARE CASE MANAGEMENT SOLUTIONS:

Case management solutions encompass multiple different areas of legal practice. However the following features are the major areas that a case management software system might cover.

• Case databases

• Time and billing management

• Contact management

• Calendar management

• Document production and sending

• Document management

Advanced case management solutions also include CRM (Client Relationship Management) and business development features. LATERAL’S case management solutions mean you don’t have to operate within the constraints of a separate CRM solution, and workflows can be created for prospecting and onboarding new clients.

If you’re looking to grow your law firm, bring in more clients, and more effectively manage your operations, then you should implement CRM (Customer Relationship Management) software. But how do you know which software is the best, and more importantly, which CRM will meet your needs? Here is a guide to help you in your decision process.

KNOW YOUR GOALS

When selecting your CRM software, ask yourself what your true needs are. There are many different CRM’s on the market, all offering slightly different features, but you need to determine what your goals are when it comes to CRM implementation. What will you be using the CRM for? To generate new business leads? To stay on top of referrals? Know what you want, and choose a provider who meets your specific goals.

CHOOSE A CRM THAT IS FULLY CUSTOMISABLE 

Again, you have to have invest in a software that specifically meets your needs. LATERAL’S CRM has custom fields and workflows that adapt to the way you work, and are designed to help your efficiency levels improve. The system is cloud based and secure. The custom workflows allow users to automate their practice, resulting in lower costs. LATERAL’s highly customisable CRM makes it easy for established firms, or newer ones, to easily transition to the next generation of advanced legal technology. 

The pursuit of debt recovery can be frustrating and time consuming. Telephone calls, letters, filing legal paperwork, and keeping track of data are labour-intensive tasks that cost time and money. But with the advent of automation, collection rates can vastly improve, and businesses can thrive by dramatically reducing the amount of time that needs to be invested in their operations. Here we outline four ways you can automate collections.  

1. AUTOMATE YOUR COLLECTION WORKFLOW

Workflow automation is technology that uses rule-based logic to automate the manual work of debt collection. By leveraging self-operating processes that run manual tasks, workflow automation can help you save time and money, diminish errors, and most importantly dramatically boost your productivity. LATERAL is process driven. Its automated workflows can be specified by its user, thereby debt collection processes are built according to your unique and specific needs.  

2. AUTOMATE PAYMENT OPTIONS

Today payment options can also be automated. Through 10 years of development, LATERAL’S software includes automated payment phone lines, SMS text payments, online payments via web portal and via barcoded letters, with all collection activities and results viewed in real-time via our online secure client portal. Why manage complex payment procedures when it can be handled for you?

Law firms are constantly trying to secure their place in an increasingly competitive market. But most firms are delayed when it comes to the acceptance of new technology – the very thing likely to keep them one step ahead of their competitors. Here we dive deep into why your firm needs attorney case management software, and how it can help you stay ahead.

IT HELPS YOU MEET THE EXPECTATIONS OF YOUR CLIENTS

If you want to meet the expectations of your clients, attorney case management software helps because it provides you with detailed information, quicker access to that information, and an overall increase in operational efficiency. Clients demand a lot from their attorneys, and LATERAL has been built with your clients in mind. Attorneys can create their own imports, reports, workflows, even data queries, bringing full visibility over the management of their client’s cases.

IT IMPROVES YOUR FIRM’S OVERALL EFFICIENCY

Efficiency is the backbone of any successful business. Attorney case management software provides its users with one centralised storage port for all their data, documents and information. Important documents will no longer be misplaced, and collaboration and communication is improved across the firm. LATERAL’S cloud-based attorney management software provides an extra level of efficiency to its users, since cases can be accessed and managed any time, and from anywhere. 

Once you’ve done your research and made some enquiries you may now have a list of prospective legal case management software options for your firm. But if you need help further narrowing this list down, one great tactic is to undertake the free demos that the software companies provide. This way you can get a real handle on their product and see if it meets your needs in reality.

Since this is an important part of your process, we’ve outlined a few tips, which should help you make the most out of the demonstrations on offer:

COME WITH QUESTIONS

Before you invest in a new case management system, you need to know if it’s going to meet the specific needs of your firm. You should know what aspects of the software system are important to you. And during the demonstration ask to be shown how these parts of the software work in reality. A useful question is: “how would I go about … ?” If you come to the demo prepared, you will get more from it.