Fluctuating filing trends heavily affect bankruptcy case processing. Despite a downward filing trend in past years, the complexity of bankruptcy processing has increased, in part, because of a shift in the types of filings. But since a peak in active bankruptcies in 2010, banks, servicers and law firms have scaled back budget and resources for non-performing loan servicing. And, in addition to greater complexity of work, interest rate increases are expected to lead to an increase in filing volumes in the near future.
So, how does a bankruptcy department at a bank or servicer continue to raise performance levels with their current, fewer resources? One way is to effectively use smart technology.
Pitfalls in default loan servicing technology and processes
Technology in the default loan servicing industry continues to evolve, but in some cases default operations have been slow to adopt improved solutions. Often organizations apply temporary patches and continue to operate sub-optimally, even upon outgrowing their technology and processes. This can result in processes that eat away at profits because of unnecessary spend, penalties, lost interest and other damage.
Technology delivers competitive advantage for small and medium size servicers
Today, the once-largest bankruptcy portfolios are being sold to small and medium size servicers. Opportunities for these growing entities to strengthen their bankruptcy processes are often overlooked, as staff is strapped for time and resources.
With filing volumes expected to increase, it’s even more important for these small and medium servicers to ramp up and get efficient. They need rock-solid processes put in place seemingly overnight or risk falling into the same suboptimal state of affairs as industry veteran shops. Here again, the answer is to embrace technology.
Smart loan servicers embrace AACER
Bankruptcy automation technology has materially improved and lowered the barriers to entry for bankruptcy departments to adopt new technology. This technology is key to navigating bankruptcy trends, including regarding the complexity of work and volume of filings. Cutting-edge bankruptcy technology, like AACER, is available for even those with limited budgets or resources. To be sure, with AACER, even the smallest servicing departments can now enjoy the same robust technologies, services and consulting solutions that once were reserved for the largest players in the market.
Benefits of AACER
AACER partners with banks and servicers to review their current business processes and implement best practices to drive efficiencies. Banks and servicers are experiencing savings in time, money and rework, while increasing investor satisfaction. With the market’s sights firmly set on increased bankruptcy filings, and the CFPB bankruptcy statements requirements taking effect soon, now is the time to reassess your operations and position your department for long-term success.