Modern Credit Control Strategies for CUs 2024

Effective credit control is crucial for the financial health of Credit Unions. Join our webinar to explore how modern strategies and best practices can elevate your credit control performance. Topics include:

- Trends shaping credit control in 2024

- Building long-term relationships through member-centric credit control.

- Leveraging modern communication channels for efficient, cost-effective credit control.

- Empowering members in arrears with self-service options to reduce negative perceptions of credit control.

- How automation streamlines credit control processes and reduces manual workloads.

- Proactive vs. reactive credit control for minimising delinquency and improving member retention.

1. MODERN CREDIT
CONTROL STRATEGIES
For Credit Unions

2. WHY WE’RE HERE

3. TRADITIONAL VS MODERN

4. EFFICIENCY
&
EFFECTIVENESS

5. 1.2024 Credit Control Trends
2.Member-Centric Credit Control
3.Modern Communications Channels
4.Self Service to Empower Members
5.Proactive vs Reactive Credit Control
6.Automation to Reduce Manual Tasks
TOPICS

6. •Enhanced Use of Technology
•Focus on Member Experience
•Economic Environment
•Regulatory Compliance and Consumer
Protection
2024 KEY TRENDS

7. MEMBER-CENTRIC CREDIT CONTROL

9. MEMBER-CENTRIC

10. MODERN
COMMUNICATIONS
Channels

11. Traditional
Letters

12. Traditional
Phone Calls
Letters

13. Traditional
Doorstep Visits
Phone Calls
Letters

14. SAMPLE LETTER

15. 73% of people list SMS or email as their preferred
channels
SMS has a 98% open rate, 45% response rate
90% of SMS are read within 30 minutes
60% of emails are opened on a mobile phone
DIGITAL COMMUNICATION STATS

16. Traditional
Letters
Phone Calls
VS
Modern
Doorstep Visits

17. Traditional
Letters
Phone Calls
VS
Modern
SMS/Messaging Apps
Doorstep Visits

18. Traditional
Letters
Phone Calls
VS
Modern
SMS/Messaging Apps
Emails
Doorstep Visits

19. Traditional
Letters
Phone Calls
VS
Modern
SMS/Messaging Apps
Emails
Self Service
Doorstep Visits

20. SAMPLE SMS AND EMAIL

21. •Consent
•Structured communications
•Integrated
•Member Preference
•Debt specific strategies
COMMUNICATIONS

22. •Map steps and communications channels
•Decide time frames for each communication at each stage
•Automated
•Ability to make ad-hoc changes
•Multiple workflows
WORKFLOW

23. 01. SMS 1 04. Letter 1
12. Final
Notice
LEGAL
REVIEW
2 Days
02. Email 1
7 Days
03. Call 1
05. SMS 206. Email 207. Call 208. Letter 2
09. SMS 3 10. Email 3 11. Call 3
SAMPLE CREDIT CONTROL PROCESS
2 Days
2 Days
7 Days
7 Days
5 Days
5 Days
5 Days
1 Day
1 Day
1 Day
80. Arrangement
in Place
PTP
1
DPD

24. SELF SERVICE
Credit Control

25. 75% of consumers prefer to resolve debt online than speak
to an agent
88% of traffic to self-service portals from mobile devices
46% of portal activity occurred outside of business hours
20% registration rate
60% of members who register self cure

26. •User experience and user interface (UX/UI)
•Automated outreach
•Parameterized self service
•Integration
•Security
KEY SUCCESS FACTORS

27. FUNCTIONALITY

28. SAMPLE SSP SCREENSHOTS

29. PROACTIVE VS
REACTIVE
Credit Control

30. 98.7
93.2
85.0
72.3
56.1
42.9
28.4
12.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Due 1 2 3 6 9 12 24
Age in Months
COLLECTABILITY OF DEBT OVER TIME

31. •Community focused
•Prevent deterioration
•Multiple creditors
•Reputation
•Regulatory provisions
EARLY INTERVENTION

32. Early activity of contacting members in advance of
payment due dates:
•Pro-active rather than reactive
•Tone is friendly
•SMS or email
•Member consent for electronic communications
PRE-DELINQUINCY

33. •Vital to avoid further build up of arrears
•Promises to pay
•Demonstrates severity
•System driven, not individual driven
SYSTEMATIC FOLLOW UP

34. •Based on key criteria
•Prioritize workflow and strategies
•Ideally automated
•Past behavior is an important
indicator of future behavior
ACCOUNT SEGMENTATION

35. •Targeting the rightaccount
•With the rightresources
•At the righttime
•Using the righttools
•To achieve the rightresult
5 R’S CREDIT CONTROL GOALS

36. Contact Details
Paddy Kelly [email protected]
[phone]
[phone]
THANK YOU