The 5 essential reasons collections managers need transparent reporting
As part of our 6 Questions a DCA Must Answer series, we’re going to focus on the importance of ‘DCA – Client’ reporting in this blog.
We know real-time data feedback is crucial in today’s business world because it helps keep everyone in the loop, in control and (when done correctly) can save both time and money.
When developing a feedback system, DCA Managers will expect transparent and direct access to key information and they’ll have a list of expectations of how it should be delivered to them, so it’s crucial the DCA can develop bespoke solutions and utilise systems that make the process fluid and obstacle free.
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Some will say it always starts with the ‘Why?’
Why do DCA managers need reports?
Aside from the obvious reason – to keep systems up to date – we’ve identified the 5 most important reasons our clients NEED to have a level of reporting that goes above and beyond the transactional reports that ‘every’ DCA offers:
It offers control
It helps build trust
It reinforces accountability
It allows traceability
Walt Disney famously said, “There is no magic in magic, it’s all in the details” So let’s make like Disney and delve into the detail.
1. Offering control
Many of those responsible for collections (be it a DCA Manager, Head of, or Collections Director) develop a particular way of doing things. Ways they understand and are comfortable with. They become extremely efficient with their own processes which leads to controlling successful outcomes. The processes and control is often cited as a major barrier to handing over responsibility to a third party unless they are convinced this control can still be maintained.
The solution is to offer a first class, 24/7 access, bespoke reporting system. An agency can help a manager avoid any feelings of anxiety by handing back the control through transparent reporting and easy around the clock access to their customers’ data and any relevant updates and insights.
2. Building trust
Trust is a currency built up over time. When handing a service to a DCA you’ll agree a set of targets before you engage in the activities. When the targets are achieved seamlessly and without obstruction trust is achieved. Reports help in the process of building trust as it allows the client to see the moving parts confirming everything is running smoothly and as agreed.
When targets are agreed it puts the onus on the service provider (DCA) to complete the set tasks approved and the fixed goals agreed. By accepting accountability, it offers the client an automatic level of confidence that the collections agency will deliver on the agreement.
4. It allows traceability
When a DCA implements a fully automated traceable system it helps them to know who is and what is involved at every ‘touch point’ of the service increasing the visibility of those responsible.
This has two key benefits:
- Reducing risk and allowing for improvements to made to the entire system, because barriers to success will be identified and dealt with quickly.
- Creating an environment fit for today’s regulatory and compliance standards.
It is also important that if there’s any manual processing involved, mechanisms are set up in place to log everything including those responsible for actioning the procedures. The logs should then be fed into the reporting system so once again the client has a full picture of the ongoing procedures and service.
5. It’s auditable
For trust building, best practice, security and legal responsibility a DCA understands the importance of internal auditing and how it serves a crucial role in its ability to be compliant within the financial services and collections industry. A tight system of internal controls can act as a front line of defence to prevent and detect any anomalies.
Final thoughts from coeo
Here at coeo we pride ourselves on our reporting software, programmes and strategies. Through our collective experience we’ve identified the importance of how insightful and accurate reporting helps build the strong relationships we currently enjoy with our partners.
From our MI Site to our bespoke auditing and task management systems – our award-winning portals are celebrated by both our clients and their customers for their ease of use and accessibility. It’s something we’re extremely proud of and something that positions us as ‘A New Breed of DCA’.