The Advent, Advantage of New Technology in Recovery Industry
FORT WORTH, Texas — What could be described as "the perfect storm" has recently hit the recovery industry. Over the last few years, a significant increase in defaulted consumer loans has created both opportunity and need within the realm of the recovery and automotive finance industries.
The opportunity to recover an increased volume of "lost" cars is evident. However, the need to identify efficiencies that expedite the recovery process has left recovery professionals looking for solutions. This is the time when the application of a new technology may be the answer you seek.
If so, luck is on your side.
There are a host of technologies available to recovery professionals that deliver of a higher level of service and significantly reduce the days to recovery. These technology tools range from repossession management software offered by Recovery Database Network and Re-Pros to mobile license plate recognition technology offered by Digital Recognition Network and RecoveryTech, among others.
These technologies can readily augment your traditional recovery practices. The key is finding the tool that best complements both your budget and business model.
It is safe to say that many of these progressive technology and services platforms are rapidly changing the face of the recovery industry.
Technology adoption among recovery agencies and automotive finance organizations is growing at an aggressive pace. It is estimated that over $350 million in targeted vehicles have been recovered in the past 12 to 18 months using these ground-breaking technologies.
In some cases, depending on the chosen application, recovery technology has increased recovery rates to 70 percent or greater. The improved financial results for the lender also create growth and value for recovery agents employing these tools.
Many of the nation's leading automotive lenders have incorporated recovery technology into their standard recovery protocol and, in some cases, have mandated that their recovery service providers utilize these tools as well. These applications are invaluable aids in mitigating losses by locating vehicles that were previously non-recoverable by traditional means.
Technology can provide a platform from which finance companies, recovery agencies, repossession management and skip tracing companies can build partnerships that are focused on collaboratively locating targeted vehicle assets. A unified response casts a wider net and yields results that are hard to overlook.
With more than 500,000 vehicles being driven by consumers that are scheduled for repossession by finance companies at any given time, the opportunity to invest in these technologies has never been timelier for anyone involved in the recovery process.
The question to consider is this: If you had $5,000 driving around on the street and you could locate and recover the vehicle for cents on the dollar, wouldn't you try?
Early adopters of recovery technology are better positioned to achieve both short-term gain and implement strategic changes that impact long-term operational goals. As you evaluate the available options, think about the risk-to-reward ratio as it relates to your business. Because these technologies are still relatively new to the industry, the risks are marginal and the rewards impressive. With regards to these technologies, consider the following:
—Wide range of pricing and usage options makes the cost of entry attainable.
—Available on national level where geography is not an issue.
—Web-based technology is available 24 hours a day, seven days a week.
—Safer and more efficient recoveries are less confrontational.
—Return on investment can be achieved very quickly.
There is the potential for high rewards:
—Open new location opportunities to secure unit.
—Generate substantial boost to recovery rates, fewer units added to charge-off lists.
— Decrease total costs associated with repossession.
— Service providers can provide real time recovery of vehicle assets.
— Adoption is mutually beneficial to recovery agents and automotive lenders.
With change there is often opportunity. While the overall economic forecast may appear uncertain, it is an exciting time to be involved in the recovery industry. The changes happening today provide a glimpse of the great promise these technologies will bring to the recovery and automotive finance industries.