Some Things Have Changed… In Collection and Recovery
by Judy Hammond, President, Resource Management Services, Inc. Some Things Have Changed. So, why haven’t technology advances made us smarter in our vendor management? That brings us back to the old discussion of whether collection and third party vendor management is an art or a science. The Net Back Discussion is a perfect example. I hear the same points brought up today that John Rousseau did in 1986. He saw an opportunity, with analytics and a special project to bring in an extra $300,000 for the bank each month, but the fees would be $100,000 (commission). Since they hadn’t budgeted for the fee, no Vice President was willing to “spend” the extra money. Trying explaining why $200,000 net increase in recovery for one Vice President is worth the other Vice President getting hit with $100,000 in expenses on his budget line. Isn’t going to happen, no matter how sexy the project is. So, sometimes the challenge is internal politics. Sometimes it’s resources and resource allocation.