Consultative Collections: The Key to Your Credit Union Success

July 23, 2024 - Debt Collection Strategy

Discover how to improve portfolio recovery, increase customer satisfaction and strengthen your reputation with an innovative and human approach.

Traditional collections methods may be damaging your credit union's reputation and... don't know how to avoid it? Discover how consultative collections can revolutionize your portfolio management strategy. In this article, you'll learn how this innovative approach, based on relationship building and problem solving, can significantly improve efficiency, increase portfolio recovery and strengthen member loyalty.

1. The Challenge of Collections in Financial Cooperatives

In a competitive financial industry, effective collections is essential. However, traditional methods often create more problems than solutions, alienating members and damaging the credit union's reputation.

2. Consultative Collections: A New Perspective

Hugo Calderón, with more than 20 years of experience in the financial industry, shares his vision of consultative collections. He says, “Consultative collections is not about chasing debts, but about understanding the individual situations of each partner and seeking mutually beneficial solutions”.

3. Proven Benefits for Financial Cooperatives

• Increased portfolio recovery: Studies show that consultative collections can increase portfolio recovery by up to 47.6% or more.
• Improved member satisfaction: By treating each partner as an individual and seeking customized solutions, the relationship is strengthened and loyalty is increased.
• Cost reduction: By resolving problems at their root, additional costs associated with prolonged delinquency and legal action are avoided.
• Reputation enhancement: A cooperative that demonstrates a humane and compassionate approach to its members enhances its brand image.

4. How to Implement Consultative Collections in Your Credit Union?

Sivoz offers customized solutions to help financial cooperatives implement an effective consultative collections strategy. Our experts can advise you on:

• Process design: Creation of efficient and customized workflows.
• Staff training: Development of communication and negotiation skills.
• Technology: Implementation of technological tools to optimize portfolio management.

Consultative collections is more than a strategy, it is a philosophy that can transform your credit union. By investing in a consultative collections solution, you are investing in the future of your institution.

Are you ready to experience a significant change in your collections strategy? Request a free consultation with our experts and find out how we can help you achieve your goals.