(Newswire.net — February 27, 2013) New London, NH — If you are the head of a bank or a credit union, you should be very curious about this press release. How can you possibly protect and grow net income, without raising fees – especially in today’s challenging new loan times?
Net interest margins have been squeezed beyond any level previously thought. Regulatory response to the recession has been to raise the new loan origination approval to very challenging levels. Consumers are personal income-reduced and future economy-scared. Consumers have moved many investments into a sure thing—bank deposits.
You are sitting on cash and cannot make new loans. Net interest margins have squeezed your institution’s income and expenses are bare bones. How can you protect and grow income?
First, reduce your Allocation for Loan and Lease Losses (ALLL). Leverage a high-performing, specialized collection and recovery system to reduce your outstandings, thereby dropping your ALLL. A by-product of lower outstandings is few charged-offs. Fewer charged-offs further protects net income.
Second, prevent collections compliance expenses. A few short years ago, ‘collection compliance’ may not have been in your vocabulary—at least not C-level vocabulary. Today, however, how much of your portfolio is sold, insured or guaranteed? If you are not suffering collection compliance errors with fines and penalties, you may be a short audit away.
Leveraging high-end collection and recovery technology can provide ‘set it and forget it’ compliance peace of mind. The confidence that collection compliance problems will not arise, as effective tools ensure steps are taken and documented; prevents collection compliance error penalties.
Third, improve prior charged-off recoveries. The improved efficiencies offer potential cost savings in reduce collection FTEs. It also allows redirecting burdened collection resources to leverage freed time (due to specialized collection technology) to ramp up prior charged-off recoveries. Grow the prior charged-off recovery stream and net income is boosted.
Technology is supposed to help operations, not hurt. Here, the market, the economy and our climate have created a perfect opportunity to protect and grow net income, while reducing operating costs and boosting collection compliance.
About IBS
IBS is the premier provider of collection and recovery software to banks and credit unions. First introduced in 1989, IBS collections and asset recovery management software is directly licensed to almost 500 banks and credit unions in 47 states and the District of Columbia, along with another 400 institutions licensed through IBS’ partners. Privately held, IBS always has been, and remains exclusively dedicated to, enhancing and growing its software’s functionality for collection and recovery professionals at banks and credit unions. IBS’ sales and marketing is complemented by a growing library of business partners: COCC, Open Solutions, FIS (formerly Metavante), Fiserv, R.C. Olmstead, SoundBite Communications, LexisNexis, ProfitStars, Allied Solutions and Greenflag by Transworld.
Contact: Alex Morgan
Phone: (603) 410-5710