People love doing business with credit unions because of the personal, member-first service they receive. It creates a strong feeling of connection that other financial institutions lack. And when it comes to recovering outstanding debts, weaving that relationship into the process is crucial. An effective strategy balances efficiency and empathy to create a positive experience that promotes long-term financial stability through loyal, financially healthy members.
Efficiency
Collections service goes beyond seeking repayment from delinquent accounts. It’s a multi-faceted, time-consuming process that leaves collectors looking for how to maximize their time and resources. That’s why efficiency is of top importance for successful, cost-efficient debt recovery. However, credit unions have to make sure the need for efficiency doesn’t undermine member relationships.
Empathy
Empathy is about identifying with and understanding each situation and treating the member involved with genuine care and compassion. Taking the time to truly listen allows collectors to uncover the root of the delinquency, whether it's a temporary setback like a job loss or an emergency expense. Empathy gives thought to the long-term member relationship and approaches debt recovery as an opportunity to collaborate with members on manageable solutions that benefit everyone involved.
Ways to find balance
Balancing these seemingly contradictory interests can be a challenge. How can credit unions maintain efficient collections services while employing empathy?
Training
Achieving balance between efficiency and empathy begins with well-rounded, comprehensive training. This includes providing a clear description of each step in the communication process, compliance rules, and priorities. Empathy is more than just verbal communication. It also requires actionable steps. Being well-informed on flexible payment options, counseling opportunities, and other available tools and services allow collectors to collaborate swiftly with members on manageable debt solutions. By practicing active listening and de-escalation methods to resolve the type of situations or conflicts likely to occur, staff can become skilled at keeping discussions with borrowers calm, positive, and resolution-focused.
Technology
When used to supplement human interaction, technology can drive both efficiency and empathy. Artificial intelligence (AI) can help save time by organizing cases and engaging in basic communication activities, while also helping members easily connect with a well-trained staff member. AI can also be used to analyze data and identify members with growing debt that might benefit from available debt management tools and services to help them avoid reaching default.
Cooperation
Credit union policy and staff must all support the goals of empathy and efficiency. Performance expectations, like balance recovery goals, need to take into account the time required to reach a solution that satisfies everyone involved. Collaborating by gathering feedback, regularly updating procedures, reviewing debt management options, and exchanging ideas for empathetic communication tactics is essential for finding a successful balance between efficiency and empathy.
Credit unions are well-trusted because they put member relationships first. They don’t make short-sighted decisions on how to handle a challenging moment that might risk the relationship they have with a borrower. While the need for collections services can put that relationship at risk, credit unions can maximize their effectives and implement a balance between efficiency and empathy through well-rounded training, technology, and cooperative teamwork.
As a credit union service organization, Envisant’s compassionate collections service team also puts people first. It’s what makes us one of the best debt collection agencies for credit unions. To learn how we can help, visit our website.
