BillingTree, an on-demand payment processing company, on Tuesday released the results of a survey into the accounts receivable management industry called "ARM Industry Opportunities, Challenges and Technology Solutions".
The results found that agencies are compelled to focus time, money and effort on compliance and risk mitigation, while at the same time needing to reduce operating expenses. Respondents' feedback saw compliance as their top priority; with increased operating expenses, and CFPB regulation factoring as key concerns.
The same survey indicated that collection agencies expect high growth levels in the adoption of new technologies to enhance collection effectiveness and in implementing cost reduction strategies as key to meeting their projected growth plans/profitability in 2013.
The research indicates that collection agencies have to balance the benefits of reducing costs against the risks of meeting increased compliance, and found that a clear vision to greater efficiency and greater process transparency is through automation and integration of payment technology, said Liz Caracciolo, VP of Corporate Development, BillingTree.
Technology usage highlights:
Use of IVR to almost double from 33%, to 60% of the total sample to use IVR in 2013
Use of Virtual Negotiation 70% of the sample expecting to use virtual negotiation in 2013
Use of text with just 14% using text, an additional 36% are planning to use text making 50% of the total sample using or planning to use text 2013
Two key technologies, the adoption of virtual negotiation a reliable and compliant way for organizations to ensure compliance while at the same increasing collection effectiveness and IVR, will see strong usage across every size of collection agency, added Caracciolo.
The research was conducted in conjunction with InsideARM.com and a complimentary copy of the survey report is available to download here.