When evaluating technology strategies for collections and recoveries systems, organisations often find themselves at a crossroads: should they upgrade their incumbent collections system or implement a new one altogether?
While the instinct to stick with a familiar vendor is understandable, it may not always be the best debt collection software for you. In fact, implementing a new platform can, in many cases, be as simple (or even simpler!) than a collections system upgrade, and it could offer significant benefits.
In this blog, I’ll take you through what you should bear in mind when making this important decision.
Adopt an open market approach
One of the key tendencies in technology strategy is to default to incumbent vendors, a pattern often summed up by the phrase “no one ever got fired for buying IBM.” Established relationships and proven track records can create a sense of security, but they can also limit organisations from exploring better options. With the rise of SaaS and cloud-native platforms, this has only been exacerbated.
However, an open market approach is healthier for clients and customers. With cloud-hosting partners such as AWS and Azure, more options are available in local markets than ever before. This has allowed established vendors to be challenged by global competition, fostering innovation, and enabling organisations to secure the best solutions on the most favourable commercial and contractual terms.
By broadening the scope of evaluation to include new entrants and emerging platforms, organisations can unlock transformative potential in their collections and recoveries operations.
The timelines are roughly the same
There is a common misconception that implementing a new system will take significantly longer and be more complex than upgrading an existing one (for example, older versions of Debt Manager or Experian Tallyman).
In reality, the timelines for both can be quite similar:
- Enterprise size upgrades typically range from 9 to 18 months, depending on the complexity of the changes and the incumbent vendor’s release cycle.
- New implementations and migration programs often fall within the same timeframe, providing an opportunity to build a robust data foundation and leverage modern capabilities. Conducting a thorough data audit and cleanup as part of this process not only ensures data integrity but also sets the stage for future scalability and the adoption of advanced technologies like AI.
A new system brings new opportunities
Opting for a new debt collection platform opens up possibilities that may not be available with an incumbent vendor. These include:
- Access to the latest technology: Many modern platforms are API-ready with real time event streaming and designed to integrate seamlessly with other systems, enabling greater flexibility and functionality.
- Advanced capabilities: New systems often incorporate cutting-edge features such as generative AI (GenAI), revolutionising collections strategies through predictive analytics, personalised customer engagement, and automated decision-making.
- Futureproofing: Building data foundations with a new platform ensures scalability and positions the organisation to leverage emerging technologies as they evolve.
While it is important to remain open to new possibilities, this isn’t an argument against incumbents. Established vendors can still offer value, particularly if their solutions have evolved and remain competitive.
The strategic opportunity at contract renewal
For organisations wedded to their incumbent vendors, contract renewal is a critical juncture. Even if the relationship with the vendor is strong, it’s essential to benchmark the collections and recoveries systems market at this stage. By evaluating alternatives, organisations can:
- Validate whether the incumbent system still meets their strategic needs.
- Negotiate better commercial and contractual terms.
- Identify potential gaps in capabilities that could be addressed by switching to a new platform.
Striking a balance
The decision to upgrade an existing, or implement a new, system is a pivotal one, with far-reaching implications for collections and recoveries operations. By embracing an open market approach and evaluating all options, organisations can ensure they are armed with all the relevant information and are leveraging the right technology to deliver value for themselves and their customers.
The key is to make the decision based on data, strategy, and future potential, not just past relationships.
Not sure where to start?
Arum has unrivalled knowledge of the debt collection software market. We are uniquely positioned to help you with assessing the market, shortlisting vendors, defining key requirements, guiding RFPs and demos, and helping with contractual negotiations.
Arum also runs the only accreditation specifically for collections and recoveries platforms. With an in-depth knowledge base of over 30 vendors (including C&R Software Debt Manager, Experian PowerCurve Collections, CGI CACS X, Exus EFS, Flexys Control+, Qualco QCR, Telrock Optimus, and Tietoevry Collection Suite Nova), and regular engagement with the market, we offer unmatched insights and recommendations tailored to client needs.
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About the author
Matt Riddall
Senior Director
Arum
Matt has been with Arum since 2008, starting as a consultant and advancing to Senior Director in 2024. With over 16 years of experience in collections and recoveries technology and operations, Matt brings a wealth of expertise in leveraging data, technology, decision-making, communications, and AI, to drive clients' success. As a leader at Arum, he is committed to delivering exceptional consulting and services to clients, ensuring excellence across all areas of the business.