Quick Overview
The latest NCUA Report shows delinquencies have hit 91 basis points—a 19 basis point increase from the previous year. With 60% of U.S. consumers living paycheck to paycheck, and inflation, high interest rates, and layoffs taking a toll— it’s no surprise that delinquencies are on the rise.
But so is the pressure to recover funds on the credit unions and community banks.
But here’s the thing: Even with delinquencies on the rise, collections don’t have to be about chasing payments – It can be about striking the right balance between efficiency and empathy to continue delivering stellar member experience. As a leader in a credit union or community bank, it’s time to rethink your strategy and adopt smarter, more compassionate solutions that streamline your processes, support your members, and protect your institution’s financial health.
Follow along to explore how you can leverage Eltropy to effectively manage your collections while building stronger, more loyal relationships with your members.
1.
Reduce Unintentional Delinquency with Automated Alerts
In an ideal world, members take loans, and they repay them — on time, and in full, without you having to intervene.
But it’s not that simple!
Life gets in the way and repayments don’t come in as expected. Your collections team probably spends hours making routine calls, sending emails, and chasing down members – they need a smarter and more effective solution to get their hands off the routine tasks and focus on what truly matters.
What is the solution? Automated Reminders.
Instead of having your collections team spend hours making collections calls or sending out physical recovery notes, set up automated text alerts to remind members about their payments.
- Text reminders can be customized & triggered by pre-defined rules such as different delinquency stages so that your staff doesn’t have to individually call each member.
- With 1:Many texting, you can also reach a large group of members at once, at the right time, without having to call individually.
With Eltropy Automated Text Reminders, you can reduce the need for redials and free up your team to focus on more complex, high-risk cases that truly need their attention. This helps you optimize the staff efficiency and effectively manage collections even when you are short-staffed. Additionally, you cut down on operational costs, reduce staff burnout, and prevent unnecessary delinquency—ensuring payments keep flowing in, without breaking the bank.
2.
Get Timely Payments from Busy Members with On-The-Go, Digital Payments
Members are juggling multiple complex things together – education, work, kids, friends, and so much more. Paying off bills often gets pushed aside. Navigating complex digital payment platforms, especially for older members who might not be as tech-savvy might become a huge contributing factor in delaying payments.
Reminders sure do help, but even with multiple reminders, if the payment process isn’t quick and easy, members will just keep pushing it to “I’ll pay later!”
What they need is convenience: a simple, fast way to pay that fits into their busy lives, and when they need it – Anytime, Anywhere!
What’s the solution? Real-Time Digital Payments
It’s not just about sending more reminders—it’s about making the payment process effortless. With Eltropy, you can embed a secure payment link directly into your payment reminder message, allowing members to pay instantly—whether they’re grabbing coffee, or running between meetings.
With a convenient payment method, your members get the freedom to pay on their terms, without the hassle of logging into a portal or waiting in line in a bank.
It’s quick, easy, and most importantly — it’s timely payment for you!
3.
Reduce Unintended Delinquencies with Real-Time Support
Managing money doesn’t come early, easy, and naturally to most people.
Some members may not fully grasp the consequences of late payments or even do not know the ins and outs of their loan terms.
Instead of expecting members to suddenly become financial gurus, you can take charge and empower your collections team to offer proactive support that your members need to regain control of their finances and avoid unintended delinquencies.
How? Text Campaigns and Co-Browsing.
A little support or a timely intervention goes a long way!
One-on-one support is all your members need. With co-browsing, you can see what they see on screen and walk them through the loan terms, payment process, repayment plans, flexible payment schedules, late payment penalties, and so much more in real-time, to ensure they don’t miss a step.
With 1:Many campaigns, you can also automate mass campaigns to send helpful, jargon-free educational content to help your members understand their loans and payments better—in terms they understand.
Give your members the confidence to manage their finances — without making them feel like they need a finance degree to do it.
Turning Delinquencies into Opportunities, the Smarter Way!
Credit unions and community banks have always been the backbone of their communities. Collection doesn’t have to be aggressive or intrusive – with the right technology in place – it can be an opportunity to strengthen your member relationships by supporting your members when they need it most.
By putting member-centric collections into action, Eltropy’s Collections 2.0 suite offers an AI-driven, flexible collections solution that equips your collections teams to engage with members in a private, empathetic, and non-intrusive way. With Eltropy Collections suite, you can boost productivity, enhance recovery rates, and turn collections into a chance to reinforce the relationships that matter most—your members.
It’s time to Break Through the Collection Silence and turn delinquencies into a chance to build stronger, more resilient connections. We’re with you every step of the way.
