Podcast ¦ Arum: Upgrade existing vs. implement a new collections system

Key Takeaways

1. The decision to upgrade or replace a collections platform affects not just technology teams but also influences customer experience, compliance, and operational strategy.

2. Sticking with an incumbent vendor may lead to complacency and could hinder access to modern tools that enhance operational efficiency.

3. An open market approach enables benchmarking the incumbent system against newer alternatives, ensuring that the best options are considered.

4. Both upgrading and replacing an older collections platform can take between nine to 18 months, depending on the complexity of the systems involved.

5. New systems provide opportunities to clean up legacy data, rethink business processes, and improve data structures.

6. Modern platforms are designed for integration, offering real-time data flows and compatibility with a broader tech stack.

7. AI capabilities are increasingly integrated into contemporary collections platforms, enabling enhanced decision-making and customer segmentation.

8. Contract renewals are strategic moments to assess whether a vendor still meets an organization’s evolving needs.

9. Gathering operational feedback and understanding pain points are crucial steps in evaluating one’s current technology stack.

10. It is essential to scrutinize the terms of commercial agreements to ensure they remain competitive and provide necessary flexibility for future changes.

11. The final decision should be based on data rather than comfort, evaluating the risks and opportunities associated with both options.

12. Organisations must consider how their collections processes and customer experiences are evolving, ensuring that technology aligns with these ambitions.

Key Statistics

• The duration for both upgrading an existing system and implementing a new one ranges from nine to 18 months.

• RM has delivered over 35 system selection and implementation programs across 20 plus countries.

Key Discussion Points

1. Incumbent vendors may provide comfort but should not be assumed to be the best fit without proper evaluation.

2. The technological landscape in collections is rapidly evolving with cloud-native platforms and AI.

3. The importance of a structured approach towards system evaluation and vendor relationship assessment during contract renewals.

4. The opportunity to enhance operational performance by rethinking processes when transitioning to a new platform.

5. Understanding data needs is imperative as analytics and personalisation become integral to collection strategies.

6. Feedback from operational teams is vital to identify specific pain points and requirements for future technology.

7. Continuous improvement from vendors versus mere maintenance of the status quo is a key consideration.

8. The potential benefits of a new system include not just updated technology but also improved data quality.

9. There should be a rigorous evaluation of potential capability gaps when considering either option.

10. Organisations must assess how well their current technology aligns with their overall business strategy and customer service goals.

11. Transitioning can provide a chance to implement data automation and real-time decision-making methods.

12. It is possible to select a preferred vendor in under eight weeks with a structured evaluation process.

Podcast Description

This podcast from Arum, a global leader in collections and recoveries, explores the critical decision-making process organisations face when considering whether to upgrade their existing collections platforms or implement entirely new systems. Hosted by an AI, the podcast delves into the complexities of technology choices, examining the impact of these decisions on customer experience, compliance, and business strategy. Listeners are guided through essential evaluation strategies, considerations for vendor relationships, and the importance of a data-driven approach, ensuring organisations make informed and proactive decisions to enhance operational efficiency.