South Texas Federal Credit Union Improves Collections Efficiency with Lexop

Based in the Rio Grande Valley, South Texas Federal Credit Union serves the broader community of Hidalgo County. Faced with rising delinquencies, they needed a way to manage collections without hiring additional employees.

Additionally, The Atlantic FCU found that handling minor delinquencies, such as those 16 to 59 days past due, took up more time than it was worth. The collections team spent valuable time on routine tasks, like following up on minor delinquencies, which didn’t significantly impact the credit union’s financial performance.

Before implementing Lexop, South Texas FCU’s outreach process began on day 11 of delinquency. Their collections process relied on manual tasks, including phone calls, individual text messages, and demand letters for severely delinquent accounts. This manual process was time-consuming, and many members were unavailable during traditional business hours, further complicating collection efforts. The credit union needed a solution to automate and streamline outreach, allowing the team to reach members earlier and manage rising delinquencies more effectively.

• $7.70 ROI per $1 Spent: South Texas FCU generated approximately $7.70 in collections for every $1 spent on Lexop, covering the cost of the solution multiple times within six months.
  
  
• 51% Increase in Collections: After refining their outreach sequences, including warm reminders during the grace period and automated SMS follow-ups, South Texas FCU saw a 51% increase in collections in the most recent quarter compared to their first.
  
  
• Collector Empowerment: South Texas FCU’s collectors do not see Lexop as a threat to their roles. Instead, they view it as a valuable tool that complements their work, allowing members to make payments after business hours. This has enabled the collectors to do their jobs more efficiently during the day, without worrying about missed opportunities.
  
  
• No Additional Staff Needed: Lexop’s automation allowed South Texas FCU to manage rising delinquencies without hiring additional collectors, freeing their team to focus on complex cases like repossessions.
  
  
• Improved Reporting and Member Insights: The team can now see when members receive and open emails, providing full documentation of engagement. This transparency has improved how they monitor member behavior and optimize follow-up timing for better results.
  
  
• Greater Member Satisfaction: Members have expressed appreciation for the convenience Lexop provides. Many no longer need to visit the branch during business hours or make a phone payment that incurs a $10 fee. By paying through the secure links sent via email or SMS, members have an easier, more flexible payment experience, fostering stronger relationships with the credit union.