Exclusive: The Top Seven CollectionTechnology Agencies in the Nation

From small to large, old to young, we spotlight seven agencies that are ahead of the pack because of their innovative use of technology. What separates these top agencies is they avidly update and implement new technologies, critical for maximizing collections in these trying economic times. We have based the Top CollectionTechnology Agencies Awards on each agency's technology practices and innovations, and used recommendations from industry participants, vendors, and consultants in determining the winners.

Congratulations to all seven agencies, presented in alphabetical order.

CACi

St. Louis-based agency CACi underwent a major software overhaul in August by beginning to deploy Latitude Software and a SER calling solution.

“Different levels of technology are enabling us to leverage cost effectiveness,” says Roger Weiss, chief operating officer.

The agency, primarily focused on the banking and medical industries, opted to employ the new solutions as a way to account for its growth, a direction Weiss believes CACi, as well as other small business collectors, will continue to follow. “We wanted to prepare for tomorrow,” he says.

The agency’s technology resources in the past few years have more than tripled to “advance functionality and capabilities, as well as security needs,” he says.

An expense is predictive analytics. Once taking a “come on” stance, Weiss determined it accelerated liquidation and shortened recovery time after implementing the tool. “It helped us to identify where we were throwing money out and where the money was good,” he says. CACi is also a large advocate of scoring, using First Data and credit bureaus to get the job done.

CACi does some “radical” customizing as well as some standard twists and turns to fit the market, but Weiss didn’t want to mention specific details.

What he did mention is CACi is considering contacting debtors via email, but wants to first implement certain safeguards. For example, there might be a disclosure sent in the email that makes the reader confirm he or she is the right-party contact.

“The more we become an on-demand society, the less consumers like confrontational talks,” he says, adding he is still skeptical of sending text messages, but is a strong advocate of web-based and IVR solutions.

Diversified Consultants, Inc.

Jacksonville, Fla.-based Diversified Consultants Inc. is a family-owned telecom collection agency that relies on right-party contacts and good employees to efficiently collect debts.

“Technology aids in collections but doesn’t collect a bill,” Gordon Beck, vice president of operations, says, adding that Diversified Consultants continues to invest in it. “You are always spending more on technology,” he says. “We spend more and we want to spend more.”

Some of the newer developments within the last year or so include an automated payment IVR. This allows customers to pay over the phone, even when the agency isn’t open. This is a good tool to deal with different time zones, says Beck.

In collecting debts, the agency scores accounts, then ranks them according to liquidity and calls them in that order. The agency also conducts inbound blending with skill routing. For example, if there is less liquidity, the debtor would be transferred to a newer agent.

For the past two years, the agency has used a station dialer with text to speech IVR campaigns. Beck says the tool increased its right-party contacts, allowing the agency to call about 250 thousand records more per month. Because of the direct connect feature, the agency isn’t relying on customers calling the agency back because they can connect voluntarily. “This process has given us an increase of about 20% on our ROC’s,” he says. Currently, the agency does contact cell phones but not by auto dialer.

Also important to Diversified Consultants is treating debtors with respect, says Gordon. “Our clients’ reputation is on the line when we are on the phone,” he says, adding that this means their agency tells debtors the positives versus what happens if they don’t pay. “We help customers and don’t hurt them.”

Gila Corp.

Municipal Services Bureau, a strategic business unit of Gila Corp., grew its revenue 192% from 2002 to December 2007.

Integration of systems and ability to focus and prioritize on what will drive the collection agency sets it apart from others, Domenick Riccio, chief information officer and senior vice president of Municipal Services Bureau, says, noting within the last year, the agency completely replaced its network as a way to keep security tight. “We replaced it down to the last wire,” Riccio says.

The agency also recently refreshed more than 300 computers with Dell Optiplex Small Form Factor workstations and Dell flat panel monitors. These computers have the capacity to handle new VoIP headset and soft phone software.

To find its debtors and generate higher revenue, the agency skiptraces its accounts. All accounts are pre-skipped three days prior to mailing the first notice to prevent mail returns. If an account gets batch skipped without locating new information, the manual skip team will get the account.

For now, the agency is just using snail mail and phone calls as its communication channels but does offer an online payment tool. It also uses check processing technology, enabling the company to electronically image and store every check and money order it receives within one day.

NCO Group, Inc.

It’s not just its size that sets NCO Group from other agencies (it boasts over 140 offices), but also the technology it implements. Interactive Voice Response (IVR), web technology and data analytics are the organization’s key drivers.

NCO is particularly innovative in the way it is attacking online channels. For example, its recent email opt-in program allows NCO to send debtors emails. To ensure safety for the company, NCO reveals the email opt-in in its letters as well as on its web site.

“The best way to get a customer through e-mail is to get them to agree to it,” says Steven Leckerman, executive vice president and chief operating officer of global services.

A customizable integrated payment solution also sets NCO from the pack. This includes ePay phone, an IVR payment solution; ePay Exchange, extranet technology coupled with a live call center representative; ePay Online, an integrated Internet payment solution; and ePay Enterprise, clients using their own system.

As for the future, Leckerman says NCO is constantly brainstorming about what will bring the agency to the next level. This includes considering what will enhance web and IVR traffic, for example, as well as what kind of alternative payment options it can provide.

Leckerman says for NCO, to be a state-of-the-art collector, a strong foundation is necessary. This means great training and management programs, as well as a strong technology and analytics.

Plaza Associates

New York-based Plaza Associates has been in the business of debt recovery for more than 40 years and is still with the times.

“We constantly invest in new technology with an eye to strategic value,” says Steve Bressler, chief information officer.

What makes Plaza Associates more innovative than other agencies is its eye on security measures.

“We take it very seriously,” he says. This is evidenced by its two telecom providers, SoundBite and LiveVox. The redundant dialer systems give the agency the ability to go to both in the event of a disaster. Another security measure allows the agency to switch its 800 numbers via a web site to any number it wishes.

Every year, Plaza tests its internal plan, as well as connections to its vendors. Bressler says the report of the test results in July alone were 85 pages long. “We have an extremely comprehensible disaster recovery plan that covers all aspects of business,” he says.

All of Plaza's technology is updated regularly, too.

For example, the agency is in the process of replacing about 400 computers. These new computers are making collectors more productive, says Bressler, adding that the computers can be remotely operated. Additionally, they emit less heat, giving Plaza a decidedly “green” dynamic to its operations.

In the last year, the agency has installed a phone routing system that allows for real time transfers of calls as well as the addition of a second firewall, to name just a few benefits.

Plaza Associates customizes software, too. Its collection system is propriety, developed in-house 30 years ago. Plaza continues to evaluate possibly migrating to off-the-shelf solutions. “Some of the stuff gives us a competitive edge, while other [components] are pretty much the same in the industry,” he says.

United Recovery System, LP

Houston, Texas-based United Recovery Systems knows customization. After all, the agency wrote its own collection protocol, Simon Intelligent System.

The company has used the system in various forms since the early 1990s, says Mike Chandler, executive vice president of business process research.

“It’s a complete end-to-end collections package for third-party agencies,” he says. This includes features ranging from built-in scoring models to advance report generating.

“There’s always a trade off with what you can do with an existing package versus the flexibility you gain by writing it yourself,” he says. The benefit to accompany to authoring its own software is the ability to make it work to its specific business practices versus the other way around, he says. He also added that it ensures a business doesn’t have to compete with others to get a vendor's attention.

Chandler says United Recovery's software is continuously updated.

“We’ve always spent a lot on technology,” he says, adding that hardware, software development, and business analytics are the major financial technology drains for United Recovery. Currently, the agency is building service architecture around its web sites and interfaces.

United Recovery uses multiple methods to dial on debtors, which includes using virtual agents to predictably dial. Chandler says no method is better then the next. “We tailor the treatment to the outcome we want from the account,” he says, which also means scoring the accounts.

As for communication channels, the agency wouldn’t typically call cell phones, says Chandler, and although the agency has the ability to perform email campaigns. The company has not made this channel a huge part of its collection process.

Weltman, Weinberg & Reis Co., L.P.A.

Weltman, Weinberg & Reis Co. LPA began to develop its propriety system in 1981. Over time, as technology moved forward, the system became obsolete.

About six or seven years ago, the collection law firm decided to purchase Artiva, a collection management system made by Ontario Systems.

Alan Weinberg, managing partner, says the firm invests in technology every year. Some of the newer expenses stem from an effort to vamp up Weltman's disaster recovery capabilites to include an offsite location that houses similar equipment to its data center. The project should be completed in November, as long as Weltman can secure installation of the offsite location's telecommunication lines. “As I understand it, if there would be a problem at our data center, we could just switch over the back-up operation, rather than having to restore a system from the daily back up,” says Weinberg.

Within the last few months, the firm also revamped its proprietary eClientNet feature. This program allows the firm to take account information from its site and place it on another secure site for clients to remotely review. Until now, clients could see the information, says Weinberg, but now they can also analyze it.

The firm is tapping into more electronic communications, too. Although it once shunned responding to debtors via email, the policy has changed. “More and more debtors are contacting us by email,” he says. As a result, the firm will respond to emails after ensuring that the debtor wants to communicate that way.