It’s been nearly 100 years since the Great Depression—the last time we’ve seen economic
numbers like this. As a result of the COVID-19 pandemic, unemployment has ballooned from 3% to nearly 20%—and we anticipate increased delinquency rates and losses for the remainder of 2020.
Now is the time to ensure you have a back-up loan servicer in place—one that is prepared for whatever the economy throws at it. As issuers struggle with the performance of their assets, it’s more imperative than ever to safeguard continuity of service, attention to detail and a positive, ongoing customer relationship.
When selecting a servicing partner, there’s a lot at stake. Be sure to consider:
Look for tenured, Financial Solutions experts with a track record of success in servicing loans, and a proven model for transitioning portfolios efficiently and with minimal interruption. Alorica’s Loan Servicing subsidiary, SST, has over 25 years’ experience helping clients manage and transition their portfolios.
Make sure your back-up servicer has deployed the latest technologies for managing the portfolio; advanced dialing capabilities, SMS, e-mail and chat—along with multiple options for payments— are just a few of the features you should look for.
Our Compliance Department is one of the largest in the industry, and manages all related issues at the corporate level—as well as in our contact centers.
Market uncertainty (politics, economics, pandemics, etc.) underscores the need for balanced delivery locations, in order to maintain business continuity and an encouraging customer experience. Alorica has a footprint of more than 100 locations in 14 countries—including over 50 sites in the US.
The ability to staff quickly is paramount when time is of the essence. We can onboard hundreds of team members the moment you need them.
Brick-and-mortar and work-from-home operations let you leverage talent from wherever they happen to live.
NOT EVERY BACK-UP IS CREATED EQUAL—KNOW WHAT KIND OF SERVICING YOU NEED!
Be prepared with the appropriate level of back-up in place
Appropriate when the underlying business is an ongoing concern; when a Hot Back-up is in place, your back-up servicer should be prepared to step in within 15 days or less…
Appropriate for most stable organizations; when a Warm Back- up is in place, your back-up servicer should be prepared to transition the portfolio within 30 to 60 days , depending on the complexity of the business. Typically, this means that data files have been mapped, due diligence has been performed and files are being received weekly at a mini mum. Under certain circumstances (such as businesses where payments are accepted in- person ), it is suggested that a detailed transition plan be developed —including how to ensure no interruption to payment flow.
There’s certainly a lot to consider, and Alorica is here to help you make sense of it all.
Learn More about Alorica’s entire Financial Solutions portfolio and SST’s
Loan Servicing capabilities—and get ready to be ready!
