Everything You Need to Know About Event-Driven Revenue Collection

 What does it take to be a successful bank? To better serve clients in today's market, banks must offer customer-centric goods and services, ensure a seamless omnichannel experience, and investigate inventive new business models. True success, however, is contingent on efficient and cost-effective operations management as well as strong revenue management. Identifying and repairing revenue leakage is essential for a successful and profitable company. Managing payment failures, bad loans, and other types of customer-driven fraud is an important aspect of safeguarding revenues. Forced or event-driven revenue collection is an approach that is gaining favour today as banks investigate ways to assure payments without disturbing the client experience.

 

What is Event-Driven Revenue Collection?

 

To compute charges and manage billing and invoicing, most banks now employ a revenue management software. Automating these activities is critical for eliminating manual mistakes and providing a consistent client experience. Most platforms in use today can also handle collections; they are strongly coupled with the core banking system and instruct it to debit money from a client's account once a billing cycle is completed or the customer has consumed the pre-determined quantity of services for a period of time. This revenue collecting method is usually done at agreed-upon intervals with the customer.

 

Changes to a client's banking relationship can be initiated by the consumer. This might be a request for a different product or a transition in enrolled product offerings and bundles. This, of course, brings their current strategy to a halt in the middle, and there is a chance of non-payment. To avoid this risk, revenue management technologies should be able to start the revenue collecting process even if it is interrupted in the middle of the cycle. Event-based revenue collection, also known as forced collection, is critical in high-risk markets and with high-risk customers. A customer, for example, may change product offerings or packages. Once this adjustment is made, a new billing cycle will begin, with the prior one being halted in the middle with an outstanding balance. 

 

Customers who are not subjected to forceful collection are free to depart without paying their debts and never benefit from the new cycle. Revenue management solutions built for forced collection may ensure that the modification is executed only after all outstanding dues have been collected. This is critical for preserving income and preventing losses.

 

The Value Delivered

 

Customers expect a flawless banking experience, while the bank wants to avoid payment failures and revenue leakage. Forced collection or event-based revenue management policies are critical for safeguarding the interests of both the banks and the customers. A customer desires the ability to make adjustments to their bank account, transactions, and plans whenever and however they like. To keep customers satisfied and earn more referrals, the customer relationship manager may want to provide them with the agility and flexibility they expect. The customer support representative may want to prevent billing conflicts later in the cycle.

The product manager will also want to establish complete openness and continued customer confidence. While ensuring revenue protection, they all want to be able to promote and assist customers in switching to new products and experiencing newly advertised services. And the revenue assurance manager will want to avoid accumulating dues and probable defaults at all costs. Event-based revenue management guarantees that everyone participating in the process is satisfied, their goals are accomplished, and that complete collections are ensured.

 

To carry out forced collection, banks must use advanced revenue management tools that have this feature. The majority of revenue management solutions are already integrated with basic banking platforms. All that's left now is for the forced collection capabilities to be implemented. Banks must collaborate with skilled partners who have the necessary modern technological platforms. Banks cannot afford to lose money owing to operational inefficiencies in today's environment of fierce competition.