Partners in Solving the Collections Conundrum

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the benefits of collections solutions for financial institutions herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.

Financial institutions face rising delinquencies and urgently need innovative solutions to support consumers through financial difficulties. As a dedicated partner, MeridianLink® offers a powerful solution delivering intelligent, actionable insights. A solution to improve debt collection management and outcomes for consumers and your bottom line.

This blog covers some key points from a recent webinar, demonstrating how the integration between MeridianLink^®Collect and MeridianLink^®Insight can help you create a more efficient and effective loss mitigation and collection process.​

Enabling Data-Driven Support for Collections

Managing debt collections efficiently while maintaining consumer satisfaction is no easy feat. Traditional methods often fall short, leaving FIs struggling to optimize their processes and make informed decisions.

In this webinar, Chris Dumas, Director of Data Product Management at MeridianLink, showcased how integrating MeridianLink Collect and MeridianLink Insight transforms this challenge into an opportunity. This integration equips FIs with tools to enhance workflows, communication, and reporting.

The new dashboards offer a comprehensive view of key metrics, including:

• Detailed case management and tracking
• Insights into debtor demographics
• Monitoring of communication efforts Tracking promises to pay commitments
• Analysis of payment patterns

These insights help collectors focus on key cases, measure productivity, and track performance precisely.

Propensity to Pay Index

The new propensity to pay index is a standout feature of the Insight and Collect integration. This index, generated by MeridianLink Insight's machine learning model, predicts the likelihood of debt repayment, helping institutions prioritize accounts. The index ranges from 1 to 10, with 10 indicating the highest likelihood of payment. This metric can be updated daily and used within the admin role for business rule configuration and workflow management.

Dumas demonstrated how the propensity to pay index can significantly enhance the collections process. Financial institutions can strategically focus their efforts on accounts with higher repayment probabilities by analyzing historical payment data and applying the index, optimizing resource allocation, and improving overall collection efficiency.

Real-World Application For Collections: Franklin Mint Federal Credit Union

David Park, VP of Loan Operations at Franklin Mint Federal Credit Union, highlighted the importance of data in driving collections, noting that collectors appreciate seeing the impact of their efforts on portfolio performance. Park went on to share his experience with the MeridianLink Collect and Insight integration.

Before implementing Collect, Franklin Mint faced challenges with disorganized workflows and inefficient communication strategies. MeridianLink Collect has since transformed the credit union's operation, enabling collectors to prioritize accounts effectively and reduce redundant efforts. The integration with Insight has even enabled more precise performance measurement and strategic decision-making.

Enhancing Collector Productivity & Performance

One key benefit of the MeridianLink Collect and Insight integration is the ability to track collector productivity and case performance through detailed dashboards. Financial institutions can manage workflows, communications, and reporting with greater accuracy, using the data within the solution to demonstrate industry trends, risk remediation strategies, and the impact of good versus bad behaviors.

Park shared that collectors at Franklin Mint now feel more confident and organized in their work, thanks to the comprehensive view provided by MeridianLink Collect. The ability to sort queues into priority by different criteria and leverage insights from the propensity to pay index has significantly improved their efficiency and effectiveness.

Future-Proofing Debt Collections Strategy

As financial institutions navigate an evolving and sometimes uncertain landscape, the need for adaptable and intelligent solutions becomes paramount.

Park envisions Franklin Mint using MeridianLink Insight to build pre-collection queues, identify early-stage indicators of financial hardship, and engage with members proactively. This approach aims to prevent delinquencies and late charges by offering consultative conversations and tailored repayment plans before issues escalate.

Transform Collections Into a Data-Driven Experience

The combination of MeridianLink Collect and MeridianLink Insight provides a robust, data-driven solution that tackles the challenges of collections head-on. This integration enables FIs to track performance, predict repayment likelihood, and streamline workflows from a unified platform. As a result, financial institutions can make more informed decisions, effectively manage the complexities of debt collections, and enhance both efficiency and consumer satisfaction - ultimately leading to better outcomes for consumers and their bottom line.

Watch the full on-demand webinar below!

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