Balancing the Risks and Profits of One Time Settlements

Systems for management of non-performing assets help allocate time, efforts, and investments for better recoveries

The digital age has simplified getting a loan with online pay outs and reliable loan management services. But, for lenders collections remain a challenge. For unpaid loans termed as non-performing assets (NPAs), Reserve Bank of India (RBI) has prescribed One Time Settlements (OTS) for relief to both borrowers and Banks.

In this day and age, timely repayments are key for banks to grow. For this, proactive efforts towards defaulters helps in monitoring settlements for credit, liquidity, and operational risks. Here, collection software boosts the maximum value from settled payments by enabling faster collaboration and timely measures.

Banks which still use manual processes to settle payments are burdened by risks arising in data collection, transaction monitoring, and post reconciliation adjustments. Moreover, one-time settlement solutions integrate with credit monitoring systems to optimize efficiency for repayments.

CRisMac OTS: One-Time Settlement Procedures Synced with Active Credit Monitoring

Settlements are a time consuming process as banks have to calculate the due amount based on the insights of a borrower, schemes of RBI, and these have to be accurate. A comprehensive monitoring and repayment calculation solution is a catalyst in the process.

CRisMac OTS solution manages written off debts (partial/full) on settlements of all claims (if any) or as an internal arrangement. It helps streamline recovery operational efforts that are a huge cost where the yield cannot be predicted.

In-built Recovery Analytics optimizes costs of these recoveries by offering intelligent decisioning using advanced statistical modules. On monitoring datasets of borrower behavior, the solution offers an overview for each portfolio and customer segment.

It eases the process of portfolio monitoring with automation for insights. An in-depth analysis allows relationship managers to act on time sensitive developments. Moreover, transactions can be monitored easily with accuracy checks for data and content validity, interchange qualifications, and balancing errors and rejected values.

How Do OTS Solutions Account for Risks and Increase Profits?

Banks have to process and settle payments from different partners depending on the loan or the payment chain. Generally, they end up with different formats of the same transaction records at the end of a settlement cycle.

CRisMac OTS helps avoid manual intervention done to match or reconcile the amounts across disparate sources. Our solution simplifies timely reconciliation, challenges in calculations for auditors, and reduces high costs of running a back office.

Furthermore, Banks can drive business growth using settlement data in near real-time to deliver value-added services to borrowers.

Profits –

  • Speedy and prompt recovery of loans and advances. Get ample time to identify anomalies or unusual behavior, such as mule accounts being used to flush out money.

  • Increase liquidity (a measure companies uses to examine their ability to cover short-term financial obligations) as liquid assets can be efficiently accounted for in assets.

Quickly Adopt a Customizable OTS Solution for Any CBS or Credit Monitoring Systems

A modern integrated solution for settlements offer API-first, cloud-backed digital technology. Banks can upgrade existing systems with zero downtime. It enables accurate monitoring with seamless data-delivery to responsible teams, along with data visualizations.

A customized automated solution transforms one time collections for quick, hassle-free operations. Using workflow-based rule engines to automate manual processes, CRisMac OTS integrates fully with legacy, on premise, or cloud-based systems.