5 critical questions to ask when choosing debt collection software

If you’re considering improving your operation by investing in new debt collection software, here are five crucial questions you should ask every supplier.

1. Is your collections software truly cloud-native?

Cloud-based debt collection software is hosted on remote servers and accessed via the internet. It often consists of legacy debt collection software that has been migrated into the cloud in a ‘lift and shift ’ process and isn’t meaningfully changed during migration. In fact, the National Cyber Security Centre states, “A ‘lift and shift’ approach will not fully realise the security benefits that can be provided by the cloud, and can introduce security issues into your architecture”.

Furthermore, legacy problems won’t magically disappear when an old solution is rehosted, so you won’t escape the restrictions that cloud-native infrastructure was designed to conquer. This means you miss out on the scalability, speed and agility that ensure you’re always prepared for the next unknown.

Cloud-native software is specifically designed, developed and optimised to run in the cloud environment from scratch.

2. How do you define real-time streaming?

‘Real-time’ can be a slippery term, but in debt collection, customer activity and agent actions need to be updated as they happen. This helps to avoid wasteful repetition, such as calling customers who have already made a payment.

In the worst-case scenario, a slow-to-update system means that important disclosures don’t reach agents before interacting with a customer, risking regulatory penalties.

Ideally, the whole system should continually refresh data to deliver the ‘always-up-to-date’ operability you and your customers need. Ask to see this in a live demo and watch journeys respond in real-time to new data.

3. How easy is it to change data and processes across the operation?

If you’re not in control of your collections system, changes to communications, data, and processes can be costly and time-consuming. This is especially true if the system comprises applications from different suppliers with different data structures.

You may have to secure IT resources months ahead of time to make simple changes or rely on several suppliers to adapt each separate application.

Enquire about low-code/no-code config tools and ask how quickly and easily more substantial changes are deployed.

4. Does your system manage the whole collections process?

Find out if all collections activity is managed on a single system or if the supplier relies on third-party applications to provide basic collections functionality such as digital self-service.

An end-to-end collections system is the only truly ‘seamless’ option. It reduces risk and complexity and provides a single source of truth with everyone accessing the same information—no swapping screens, latency, lost data, or regulatory black holes.

5. Can I see your development roadmap?

Current functionality is important, but to evaluate the future value of your investment, examine the development roadmap for an ongoing commitment to developing new functionality. Ask if upgrades still exist and how they are deployed and costed.

Does the supplier deliver regular, minimally invasive refreshments of pre-tested individual components or old-style whole system upgrades that need disruptive downtime?