FIS Blog

Modernizing Credit and Collections in a Shared Service Center

May 17, 2018

There are many versions of shared service centers around the globe. According to the FIS 2017 market study, “Managing Credit and Collections Risk through Unpredictable Times,” 36 percent of companies surveyed state that they have one global center supporting their company. Another 24 percent maintain regional centers, while a further 15 percent have some form of hybrid approach. No matter what business reasons drive the decision on which type of approach to take with a shared service center, they all have their own challenges to ensuring the performance and savings goals of a shared service center are obtained.

In general, the reasons why a company looks to create a shared service center are positioned around improving operational efficiency, cost savings and performance improvements. Shared service centers allow a company to manage an entire process versus attempting to make institutional improvements across multiple operational reporting lines. When one person or group is responsible for decision-making, improvements are much easier to implement.

In general, the reasons why a company looks to create a shared service center are positioned around improving operational efficiency, cost savings and performance improvements. Shared service centers allow a company to manage an entire process versus attempting to make institutional improvements across multiple operational reporting lines. When one person or group is responsible for decision-making, improvements are much easier to implement.

The challenges that finance/accounting shared service centers face are related to resistance to change, concerns over customer service, lack of control, disparate systems and performance degradation. These are all valid concerns. However, they can be overcome in the credit and collections world by modernizing credit and collections with a full process automation and workflow credit and collections solution that consolidates information, creates transparency and aids in collaboration.

Working with disparate ERP /accounting systems can be extremely difficult. Many teams face the mundane task of manually consolidating the information from each system into a spreadsheet just to be able to provide some very basic metrics. They spend more time pulling the information together than they do actually analyzing and making decisions based on the information. With a solution that is designed to integrate with any ERP system, all the necessary information is automatically consolidated and presented in one user interface. Teams can stop wasting time manually putting the data together and can now analyze the executive dashboards and/or raw data in an easily consumable format. Managers now have the ability to monitor individual and team performance while making operational adjustments as necessary, all within one place.

No one likes to get blindsided about a customer issue. With a solution designed around providing real-time information to a sales team through a mobile app, they can walk into a customer meeting with confidence. The information regarding credit decisions and collection status provides them with the knowledge they need to be as successful as possible.

No one likes to get blindsided about a customer issue. With a solution designed around providing real-time information to a sales team through a mobile app, they can walk into a customer meeting with confidence. The information regarding credit decisions and collection status provides them with the knowledge they need to be as successful as possible.

Leveraging a full process automation credit and collections solution not only makes automatic credit decisions but also applies artificial intelligence to the collections process by automatically adjusting strategies based on future risk of delinquency or non-payment. Collection teams are more efficient and no longer have to spend time prioritizing their day. They can focus their efforts on contacting the right customer, at the right time, via the right method to drive improved results. Implementing a full process credit and collections automation solution to support the credit and collections teams within a shared service center takes the pain out of credit and collections processes. Customer service levels improve through proactive identification of disputes and real-time data sharing. Disparate systems are no longer an issue with all data consolidated into one place for teams to work. Visibility to operational performance at an individual and team level eases the concerns over loss of control. These process enhancements obtained by modernizing credit and collections with a credit and collections solution drive gains in performance results, improvements in cash flow and reductions in working capital requirements.