It’s crucial that creditors’ collections and recoveries systems are efficient, fit for purpose, and ready for what the future holds.
But what happens if you’re working on an older legacy system, such as Experian Tallyman or old and unsupported versions of C&R Software's Debt Manager (formerly FICO's)? How will you maintain the system without formal vendor support? How will you keep up with the pace of change needed to support your customers? How will you remain compliant with regulations? Will you be able to utilise your data effectively?
In this blog, I will explore the risks and how you can mitigate these.
What risks does an unsupported system pose?
You’re on your own
Every system encounters the odd problem. But who do you turn to when the vendor no longer supports the old system? If your organisation doesn’t have the skills and knowledge to fix it, a minor problem can quickly become a big issue if left unresolved.
Regulatory and security risks
Regulatory changes are constantly being introduced, such as the ‘breathing space’ moratorium, or the FCA's Consumer Duty. But who do you turn to help make these changes when the vendor no longer supports the old system?
Security protocols and standards are also being constantly updated. Older systems are more vulnerable to security breaches and attack because of the lack of vendor maintenance support and updates.
Technology incompatibility
As new technologies are introduced or updated, how will your legacy system remain compatible? Links between systems and previous processes may not work and will often require costly manual interventions, creating operational inefficiencies.
Difficulty adapting to change
How will an organisation using a legacy system keep up with changing market and customer needs? Reduced investment in older systems means the gap will grow between what the legacy system can do, compared to what you want or need it to do.
For example, more and more organisations are using tools such as Open Banking to assist with income and expenditure assessments or enabling faster digital payments; integrating these kinds of new capabilities into an unsupported legacy system is unlikely to be a priority.
What can you do if you find yourself in this situation?
Find and engage some experts - specialists who really understand your system. They will help you explore your options (whether that’s to plan for an upgrade or move to a new system) and, most importantly, what to do in the meantime.
Arum has extensive knowledge of over 30 collections and recoveries systems and we’re currently helping organisations upgrade their legacy technology through the Arum Managed Service (AMS), which takes away the heavy lifting from the client, right from pre-implementation planning, to post go-live, to ongoing support.
If you would like to discuss any of the topics raised here, please feel free to contact me.
Hasib Ahmed
Consultant
Arum