How Banks and Credit Unions Can Use Automation to Solve Operational Inefficiencies

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Automotive loan recovery can be a resource-heavy, time-consuming process, especially for small banks and credit unions. Manual tracking of delinquent accounts, contacting borrowers, and managing repossessions often lead to delays, errors and rising costs for the lienholder. As the number of delinquent auto loans continues to rise this year, it’s imperative for banks and credit unions to get ahead. How?

To streamline the auto loan recovery process, many are turning to the power of automation to accelerate vehicle recovery, manage compliance, and pay service providers.

The Power of Automation

According to McKinsey, automating key banking processes can improve operational efficiencies by 20%, freeing up staff to focus on high-value tasks like customer service. For banks and credit unions facing rising delinquency rates and limited staffing, automation isn’t just helpful—it’s essential. With the right systems in place, institutions can reduce losses, increase recovery rates, and improve borrower experiences, all while maintaining regulatory compliance and scaling their operations for future growth.

Using RecoveryConnect to Automate Recovery Tasks

Credit unions and banks of all sizes are turning to RecoveryConnect to take advantage of the platform’s automation solutions to help streamline workflows and improve efficiencies. These automations include:

‍Recovery Strategy: Use our decision engine to automate assignments, reassignments and LPR strategy, helping you to put your recovery strategy on autopilot. With our decision engine, our clients have seen up to a 29% increase in recovery rates in just six months from deployment. ‍
Invoice and Fee Approval Processes: With our Smart Invoicing solution, you can automate your invoice and fee approval process to promptly pay service providers. A previously manual and cumbersome task is now saving banks time by auto-approving 88% of invoices. ‍
Compliance Checks: Automate the verification of lienholders of your loan using Lien Verification. The solution checks for lienholder changes to prevent wrongful repossessions. ‍
Insights and Reporting: Access insights and reporting, including automated vendor scorecarding to help understand how to enhance your recovery strategy.

Start Automating Your Case Management Process

With auto loan delinquencies at a high, it’s imperative for credit unions and banks to tap into technology platforms to help streamline processes and ensure you are recovering vehicles as soon as possible.

How are you currently managing your cases? Or are you wondering if your current platform has all the features you need to drive success? Download our Case Management Made Easy: Harnessing the Power of Technology guide here to learn how you can leverage technology to help streamline your current case management process.

Interested in learning how you can leverage automations from RecoveryConnect at your bank or credit union? Reach out to us at sales@mbsicorp.com or fill out our contact form and we’ll get in touch.