Despite the fact that much of the credit & collections industry uses outsourcing for portions of their business, there are still a lot of misconceptions about how it works.
Myth #1 – Clients will not allow use of an offshore partner for back office or collection work
Fact: The majority of the national issuers and debt buyers have approved their servicers’ leveraging a certified business process management partner.
A leading and experienced Knowledge Process Outsourcing (KPO) company will have worked with the end-clients to develop an approval process and will guide firms on how to have the discussion with their client. The end-clients understand the benefits of outsourcing, and with a trusted KPO company and robust vendor management processes, will very frequently approve the partnership.
Myth #2 – We are unique. It will be too complicated to train another company to perform our processes
Fact: Clients, states requirements, and collection platforms drive much of the general operational processes of a collection company.
An experienced KPO company will have knowledge of the industry and experience with the major end-clients, collection platforms, and states. They will already have an understanding of the general processes and will work with you to document and train on the company-specific differences. They will also have a rigorous QA and internal audit processes to ensure quality and compliance.
Myth #3 – Business Process Outsourcing in the Collections Industry is all Call Center Work
Fact: There is a wide breadth of processes that can be performed by a BPM company to augment staffing, reduce costs, and improve quality output.
At Provana, we have experience and deep understanding across the majority of the collections back office. Firms engage Provana to do work from client services to pre and post-judgment support, to audit and accounting processes.
To succeed and grow in today’s collection industry, agencies and firms should understand that knowledge process outsourcing is being used as a very effective tool to exceed performance goals. In addition to providing significant cost savings, it can help optimize operations and allow for scalable growth with clients.