Eltropy’s texting platform enables CFIs to manage collections despite a looming recession
SAN FRANCISCO, Oct. 18, 2022 -- Rumblings of the U.S. economy falling into recession have been growing for months, but recent higher inflation data and monetary policy action have rapidly increased the likelihood of a recession occurring late this year or early next. What has complicated things even further is that consumers no longer have access to the loans and funds distributed as supplemental income during the pandemic. For community financial institutions, the question becomes, “What can we do to manage risk while assisting consumers?”
As some CFIs are already experiencing an increase in late payments, their strategy is to stay ahead of collections with early intervention. Eltropy, the digital communications platform serving over 500 CFIs, provides a Text messaging solution that plays an integral role as one of the most successful tools for early intervention and managing collections for leading CFIs.
“Our members would almost never pick up our collections calls but opened up their hearts on Text. With Eltropy’s digital communications platform we experienced a 34% click rate compared to a less than 1% engagement rate via email. I continue to be blown away with how effective Eltropy’s Text Messaging platform has performed for loss mitigation at Canvas Credit Union,” stated Shawn Spratt, VP of Collections for Canvas Credit Union. “One other concern was whether our customers would opt out of Text messaging. We were pleased to discover our opt-out rate for texting was only 2.56% versus 60% for telemarketing calls.”
With a 98% open rate for Eltropy’s Texting solution, which only requires minutes of the consumer’s time to respond, Texting is the new and efficient method for collections communication. CFIs can use automated reminders and collection notices during early-stage delinquency and 1:1 Text and Video Banking communication during late-stage delinquency to obtain more collections.
“We have seen CFIs use Eltropy’s texting platform to achieve instant results. Customers are clearly more receptive to texting. We’ve noticed that only one out of 100 customers will respond to phone calls. However, 40 out of 100 customers will respond to Text messages. Text is an extremely powerful tool that enables CFIs to combat delinquencies,” stated Ashish Garag, CEO and co-founder, Eltropy.
Eltropy enables financial institutions to engage in a secure and compliant way digitally. Using our award-winning Digital Communications Platform, community financial institutions can communicate, automate and use intelligence to improve operations, engagement and productivity. Community banks and Credit Unions use Eltropy to communicate with consumers via Text, Video, Secure Chat, co-browsing, screen sharing, and chatbot technology — all integrated into a single platform bolstered by proprietary AI, skill-based routing, and other contact center capabilities.
For more information about Eltropy, please visit https://eltropy.com.