Podcast ¦ Arum: Managing the risks of an unsupported collections system

Key Takeaways

• Unsupported debt collection systems expose organizations to significant operational risks and compliance challenges.

• Lack of vendor support means no access to updates, patches, or technical assistance, increasing the likelihood of disruptions.

• Regulatory changes require systems to be adaptable; unsupported systems may not be able to comply, leading to legal risks.

• Organizations typically spend 30% more maintaining outdated systems compared to modern alternatives.

• 80% of firms report operational inefficiencies directly caused by their legacy systems.

• Modernizing collections technology can lead to a reduction in manual interventions by up to 25%.

• Investing in AI for collections is becoming a standard practice, with 70% of financial institutions currently doing so.

• Documenting processes and workflows is essential to reduce knowledge dependence on individuals and enhance operational stability.

• Cloud-based systems offer scalability, up-to-date security, and better data accessibility, aligning with modern industry standards.

• Collaborating with experts can streamline the upgrade process and minimize risks associated with unsupported systems.

• Creating a strategic roadmap for technology modernization allows organizations to transition proactively instead of reactively addressing failures.

• Organizations can modernize their systems in a modular fashion, implementing new solutions without overhauling everything at once.

Key Statistics

• Organizations spend 30% more on maintaining outdated systems than on modern ones.

• 80% of firms report operational inefficiencies directly due to legacy systems.

• Firms that modernize often see compliance improvements within a year.

• Modernized systems can lead to 25% fewer manual interventions.

• 70% of financial institutions invest in AI for collections.

Key Discussion Points

• The risks associated with unsupported debt collection systems.

• The importance of having a backup plan if a collection system fails.

• The need for documentation of processes and workflows for operational transparency.

• Comparative costs of maintaining outdated systems versus modern alternatives.

• Ways regulatory changes impact the ability of legacy systems to remain compliant.

• The benefits of cloud-based systems for scalability and security.

• The role of AI and automation in streamlining collections processes.

• The significance of cross-training teams to mitigate risks tied to individual knowledge.

• The opportunity for modernization without a complete system overhaul.

• The necessity of consulting with experts when facing unsupported systems.

• The importance of creating a long-term roadmap for technology advancement.

• Leveraging modular solutions to enhance collections capabilities.

Podcast Description

This podcast, RM AI Insights, delves into the evolving challenges in the collections and recoveries landscape, particularly for financial services professionals dealing with unsupported debt collection systems. It explores the risks posed by maintaining outdated platforms, the impact of regulatory changes, and the benefits of modernizing technology solutions. With insights on strategic planning and collaboration with experts, this podcast is a vital resource for organizations looking to improve their collections processes sustainably and effectively.