What if the thing you’ve been hesitant about in your credit union or community bank – automation could actually make your team’s life easier, not harder?

Workflow automation in collections has carried a reputation problem for decades. Credit unions and community banks often assume it’s too expensive, disruptive for staff, or too complex to implement. As a result, they stay stuck with manual, time-consuming processes that drain resources and slow down collection efficiency.

But the landscape is shifting. Modern credit union workflow automation isn’t about replacing people or buying shiny new tools; it’s about operational efficiency. With the right strategy, it streamlines repetitive tasks, reduces friction for staff, and gives teams more capacity to focus on what truly matters: supporting consumers.

In a recent webinar, Michael Pupil, VP of Collections at Eltropy, and Sonia Harris, SVP of Lending at Community Resource CU, tackled the biggest misconceptions head-on. Their insights make it clear: automation for credit unions and community banks can start small, build on what you already have, and deliver meaningful results without a massive overhaul.

Let’s hear the experts break down the three biggest myths about automation in collections and what forward-looking leaders should be doing instead.

Myth 1: Automation = Huge Budget Investments

Many credit unions and community banks shy away from automation, assuming it requires massive technology investments. But in reality, workflow automation can start small, right within the systems you already have, without straining the budget.

Advice: “What’s best doesn’t mean what’s most expensive. Start where you are.”

Michael Pupil, VP of Collections at Eltropy, points out that some credit unions still process checks by mail. “You can’t just tell members to stop sending checks. The goal is to find a way to process that check in the easiest, fastest way possible.” Automation doesn’t always mean buying expensive software; sometimes it’s about analyzing existing processes and making small, smart changes that deliver big efficiency gains.

Sonia Harris, SVP of Lending at Community Resource CU, echoed the sentiment, pointing out that people assume automation comes with a huge price tag, but what’s best doesn’t have to be the most expensive. 

“Start by assessing the work being done and identifying pain points – Are staff manually generating reports or dashboards? Are they checking accounts every day to move funds? These tasks are often easy to automate, and free up the staff to focus on higher-value work,” she adds.

Sonia also highlights an often-overlooked opportunity: credit unions often have systems in call centers, marketing, and other departments that can be leveraged for collections. By making use of these existing tools, teams can increase efficiency right where they are without blowing budgets. 

With a little strategy and smart use of existing resources, automation becomes less about spending more and more about working smarter.

Myth 2: Automation Creates Extra Stress for Staff

Many employees worry that introducing automation will disrupt their daily workflows or change how they do their jobs. But in reality, automation is designed to reduce repetitive tasks, giving employees more time to focus on work that truly matters.

Advice: “Automation frees up time so staff can focus on meaningful consumer interactions.”

Michael highlights that when implemented correctly, automation removes the burden of routine work so teams can engage in more valuable conversations. Staff can manage more accounts efficiently, speed up processing times, and deepen consumer relationships. “Smarter processes and technology don’t just enhance the consumer experience; they empower teams to do more without always needing more headcount,” he explains.

Sonia adds perspective from her team: “Collections is mentally taxing. Staff juggle countless member stories and difficult decisions every day. My approach is simple: ask them, ‘Which tasks slow you down?’ Often, it’s the ones they put off until the last minute. By automating these tasks, you create employees who are enthusiastic about the change and begin to actively seek efficiencies on their own.

Sonia also points out that automation creates strategic opportunities, especially when attrition occurs. If a team member leaves, you may not need to immediately replace them because automated processes already handle part of the workload. This can free budget dollars to invest in AI-powered collections solutions or other resources that improve efficiency.

Automation transforms repetitive work into opportunities, freeing staff, boosting efficiency, and letting your team focus on the conversations that truly drive impact.

Myth 3: Automation Is Too Complex

Many credit unions assume that implementing automation is complicated or requires major overhauls. In reality, automation can be simple, incremental, and highly effective when approached strategically.

Advice: “Sometimes it does not have to be big and grandiose. The best furniture is repurposed.”

Michael explains that overthinking the implementation process is a common pitfall. Teams often imagine automation requires massive change or flashy tools, but it’s really about identifying opportunities for efficiency and streamlining existing processes.

Sonia also emphasizes keeping things practical. “Sometimes it does not have to be big and grandiose. Scale it down to what is efficient, what makes sense, and what works best. Just because something is expensive or shiny doesn’t mean it’s the right solution. Sometimes the best furniture is repurposed.”

She shares an example from her own team: by observing employees’ workflows, she identifies minor inefficiencies that add up. Even something as simple as a collector walking back and forth multiple times a day to update records can be automated. Eliminating these small tasks saves time, reduces friction, and creates smoother workflows.

By focusing on small, strategic improvements rather than large-scale overhauls, automation becomes approachable, effective, and empowering for both staff and the institution.

Collections Automation is the Future!

The future of credit unions and community banks won’t be defined by doing more of the same. It will belong to those who embrace smarter AI-powered collections solutions and more efficient workflows, without losing the human touch.

Eltropy Safe AI is your ally in this transformation.

Purpose-built for credit unions and community banks, Eltropy Safe AI turns repetitive tasks into opportunities for impact. It boosts efficiency, strengthens collections outcomes, and ensures human-first service at every touchpoint. With 360-degree, enterprise-wide AI capabilities, including 24/7 support, we empower your teams with operational intelligence, freeing them to focus on the conversations that matter most.

Automation isn’t the monster under the bed. When implemented strategically, it’s a powerful partner that simplifies processes, reduces friction, and delivers a smarter, faster, and more human-centered experience.

The future of collections is here, and it’s ready to help your teams and consumers thrive together. Connect with our experts now!