Case study

See how Lexop helps financial services providers

While the financial landscape has changed drastically over the years — from checks to wire transferring, banking apps, and cryptocurrency payments — there is at least one area where financial services have fallen short of updating their processes.

The collection of past-due payments can get hijacked by unproductive operational practices and an ineffective repayment customer journey. Financial services can reduce Days Sales Outstanding (DSO) by adopting Lexop's collections software to sit on top of their current accounts receivable system.

Read on to learn how financial service companies have improved their debt recovery capabilities with digital collection tactics.

The problem

Most companies in the financial services industry have in-house collections departments as part of their risk management and loss reduction infrastructures. These offices are expectedly competent at collecting defaults on credit card debt, lines of credit, leases, auto loans, and other financial services lending products. These teams rely on compliant collections systems to manage their day-to-day operations for unpaid or delayed receivables, with many now leveraging a variety of traditional and digital debt recovery techniques.

Many lenders have failed to see a huge improvement in self-cure rates after implementing a digital collection tool. Most customers aren't taking action past checking the email — many would ignore its call to action — and only a few make it to the end of the journey and actually make a payment.

This inaction is expected in the financial services industry because past-due customers can't make payments directly from the reminder message. We've seen cases where customers must log in to their account and navigate through multiple menus and confusing interfaces, only to call customer service because it got too complicated.

Meanwhile, someone in the collections department is still required to perform manual tasks to reconcile the accounts because the enterprise resource planning (ERP) software and collections systems aren't integrated.

Many financial lenders have turned to digital tools — whether built in-house or purchased from an external vendor — to enhance their collection processes. Implementing new tools must be done with considerable planning for compliance, privacy, and security to safeguard confidential consumer data. There must also be consideration of the cultural implications within the organization, requiring the buy-in of the executive leadership team and the collections professionals who will be using the tools regularly.

There must also be consideration given to the high costs associated with maintaining technology as payment and security standards are continuously improved. This can be expensive and time-consuming. At the same time, there's a need to scale capacity for collections processes to accommodate ongoing surges in the volume of past-due accounts. With the prevailing economic uncertainty, many lenders are preemptively optimizing their collections systems and processes to prepare for the looming 2023 recession.

The solution

While the goal of recouping debt as efficiently as possible hasn't changed, digitizing the collections process in a humane way will be at the forefront of financial services. With Leoxp's digital collections software, we’ve made it easy for lenders to prepare for the incoming collections surge while improving cash flow, reducing DSO, and improving customer satisfaction.

Lexop helps lenders improve their payment journey for past-due accounts without having to build expensive add-ons in-house or depending on the IT department. Our solution sits on top of your existing systems, and provides a simple user interface for both your agents and customers. Your collections department will be able to scale seamlessly, without any impact to your headcount or budget.

Lenders can cost-effectively upgrade their current collections system with Lexop's white-label SaaS solution that seamlessly integrates with your existing system. We make it easy to scale your collections outreach through automated digital reminders (i.e., email and SMS) based on a custom cadence that best suits your needs.

Increase your cash flow and reduce DSO with Lexop's digital collections software. Our integrated digital payment portal puts your customers in the driver's seat, offering flexible options with a single click.

"Lexop is well-positioned to support our organization's Customer-Centric approach and leverage the most modern technologies on the market."

John De Rosa
Manager, Account Services at Audi Finance and Volkswagen Finance

By automating personalized digital (SMS and email) reminders, organizations can interact with past-due customers at scale. Lexop's integrated, login-free payment portal resides within the reminder message, making it easy for customers to pay their late bills instantly.

Lexop helps lenders achieve higher self-cure rates, improve cash flow, and decrease Days Sales Outstanding, all of which can be tracked in real-time through the Lexop reporting dashboard.

With digital reminders and a login-free payment portal, our clients can provide a better past-due customer experience that aligns with current repayment preferences. They save up to 25 hours a week of agent time by shifting their focus on more complex accounts, resulting in more productive customer relationships.

See how Lexop helps financial services providers

Focused on results

The problem

The solution

"Lexop is well-positioned to support our organization's Customer-Centric approach and leverage the most modern technologies on the market."

How have financial services benefited from adopting our solution?

Learn why more lenders are choosing Lexop as their go-to collection software solution.

Stay informed!