6 Benefits of Cloud-Based Software for Collections

Cloud-based software is now an indispensable aspect of our professional lives, transforming how we operate, interact, and address challenges, from optimizing our financial processes to enhancing collaboration with colleagues for increased efficiency. Cloud-based software solutions are ubiquitous, seamlessly driving our daily business activities.

Consider widely-used productivity tools like Slack, Zoom, and DocuSign. These platforms leverage the cloud to facilitate seamless communication, virtual meetings, and secure document management. By harnessing the flexibility and scalability of cloud infrastructure, businesses gain access to enhanced convenience, agility, and operational effectiveness.

Flexera’s 2023 State of the Cloud Report reveals that in 2023, 96% of enterprises use at least one cloud service, with the average number of cloud services used being 2.2 in midsize enterprises and 4.8 in large enterprises. 

Within Flexera’s report, cost-effectiveness is the top metric for assessing cloud goals. However, more and more organizations are now recognizing the importance of cloud technology in driving innovation and gaining a competitive advantage.

Cloud vs On-Premise Software

We know that cloud-based software is everywhere, but what does it mean?

When it comes to software deployment, there are two primary options - cloud-based and on-premise solutions. Understanding the key differences between these approaches is essential in finding the right fit for your business needs. 

On-premise software refers to applications installed and operated on local servers within the organization’s physical infrastructure. This traditional model provides complete control over data and customization but requires significant upfront investments in hardware, maintenance, and IT resources (which often come at a premium these days) - we see you IT teams. 

On the other hand, cloud-based software operates on remote servers and is accessed via a browser. We’ll get into more of the benefits below, but this more modern approach is appealing as the cloud provider manages the infrastructure and software updates. 

Top Benefits of Cloud-Based Software for Collections

Below are six of the top benefits of cloud-based collections software. 

Cloud-based software significantly reduces upfront costs by eliminating the need for expensive hardware and infrastructure. Additionally, you only pay for your resources and services, allowing for better cost control and scalability.

You can get started quickly and efficiently by eliminating the need for complex and time-consuming installation processes, hardware setup, and infrastructure management. 

Cloud-based software has pre-configured settings and templates designed to streamline the implementation process. These templates provide a foundation for your collections processes, reducing the need for extensive customization from scratch. With cloud software, you can access the latest features and security enhancements without manual intervention, eliminating the need for time-consuming software updates or migrations. 

With collections teams experiencing a heightened workload with the rising delinquencies, they can focus their time on effective outreach strategies, refining customer segmentation approaches, and maximizing efforts towards analyzing and measuring collections results. 

3) Increased Scalability

Cloud-based collections software can easily adjust as business needs change and grow. As your collections functions expand or experience fluctuations in workload, cloud software can seamlessly scale up or down to meet the demand. 

4) Greater Flexibility

One of the key aspects of flexibility in cloud-based collections software is the ability to access the system from anywhere, at any time, as long as there is an internet connection. This benefit allows collections teams to work remotely from any location and collaborate effectively, regardless of physical boundaries. Having the ability to work remotely is a great work benefit for recruitment and retention. 

5) Improved Security and Data Backup

Data security should be a top priority for any business, especially in collections functions that deal with sensitive customer information. With cloud technology, sensitive customer data, and financial information are stored in secure data centers equipped with multiple physical and digital security layers. These data centers are often equipped with high-security systems, including firewalls, encryption protocols, and intrusion detection systems. 

Data is also backed up regularly so that data can be quickly restored when needed, preventing data loss. 

6) Simplified Procurement

Another significant benefit of cloud software is the simplified procurement process provided by Microsoft Azure, AWS and Google Cloud Marketplaces. These marketplaces serve as centralized platforms where you can easily discover and evaluate a wide range of solutions tailored to your specific needs.

By leveraging these marketplaces, you can efficiently navigate through various software options, read reviews, compare features, and ensure you’re investing in a quality and verified product. The simplified procurement process saves valuable time and effort, eliminating the need for lengthy procurement cycles and extensive vendor evaluations. 

Hear the benefits of a cloud ecosystem from Michael Thibodeau -  Microsoft Azure Segment Lead: 

Take stock of all the challenges you might have within your collections operations. From there, start thinking about how a cloud-based solution can solve those problems faster and provide a future-proof solution that keeps you ahead of the competition. 

Lexop is on the Microsoft Azure Marketplace

Microsoft Azure is a trusted and reputable platform that ensures all software listed within their marketplace has undergone rigorous testing and meets industry standards. Explore Lexop on the Azure marketplace and take advantage of the cost-savings, speed to market, scalability, flexibility, and security that come with it.