Podcast ¦ Arum: Buy vs. build for debt collection platforms

Key Takeaways

1. Organizations must weigh the benefits and drawbacks of buying off-the-shelf collections platforms versus building custom solutions.
2. Off-the-shelf systems offer pre-built features and a quicker implementation time but tie organizations to vendor roadmaps.
3. Building in-house systems provides customization but requires significant resources, expertise, and ongoing maintenance.
4. A hybrid approach can offer flexibility, combining elements of both purchased and custom solutions.
5. Thorough planning and documentation of requirements are critical before purchasing any system.
6. Integration with existing platforms and data sources can incur hidden costs that need careful assessment.
7. Regulating compliance, security, and scalability must be prioritized from the outset, regardless of the chosen approach.
8. Understanding internal capacity and the opportunity costs of resource allocation is vital in the decision-making process.
9. Future technology trends in collections indicate a shift toward AI-driven decision-making and increased automation.
10. Organizations should consider total cost of ownership over time, including the costs of managing upgrades and maintenance.
11. The collections landscape necessitates adaptable systems to manage evolving regulatory requirements.
12. RM offers expertise in guiding organizations through the complexities of technology choices in the collections and recoveries space.

Key Statistics

• RM operates in over 23 countries, providing extensive consultancy and advisory services in collections and recoveries.
• Over 35 system selection programs have been delivered across 20+ countries.

Key Discussion Points

1. The podcast addresses the strategic decision between buying and building collections technology platforms.
2. Features of available off-the-shelf platforms from vendors like C and R Software, Experian, and CGI are explored.
3. The potential wait time and custom development costs associated with off-the-shelf systems are examined.
4. The significant challenges and resource implications of building an in-house system are discussed.
5. Advantages of a hybrid model, which leverages existing platforms like Salesforce and Microsoft Dynamics, are highlighted.
6. The importance of thorough requirements documentation to avoid mismatched expectations is emphasized.
7. Integration challenges between new systems and existing technologies can lead to unforeseen costs.
8. Key pitfalls of the build approach include underestimating the complexity and ongoing maintenance needs of a custom system.
9. Essential questions to guide decision-making on technology options include the internal expert capacity and resource allocation.
10. Regulatory pressures and compliance considerations remain a top priority in technology investments for collections.
11. Future-proofing collections technology investments is crucial as regulations evolve and customer expectations change.
12. The podcast provides insights for financial services professionals to navigate the complexities of collections technology decisions.

Podcast Description

The RM AI Insights podcast delves into the intricacies of collections, recoveries, and financial services, offering expert analysis on critical industry topics. This inaugural episode discusses the strategic dilemma of whether to buy off-the-shelf collections platforms or to develop custom solutions in-house. With a focus on practical advice, industry trends, and best practices, the podcast aims to equip professionals with insights needed to make informed technology decisions in a rapidly evolving financial landscape.