Debt collection software has been around for over 25 years. In that time, we have seen major changes in computer technology and application requirements within the industry. After many years of “practice” and experience, why are we facing so many technical challenges? We have more lawsuits and legislators after us, compared to any other period. Our profitability has been affected. Granted, the economy has been a problem, but that was 5 years ago. We have had plenty of time to adjust.

Do we have a problem with technology in debt collection systems? After all, it is the core of our operational processes. We have trusted computers to do more and more of our work each year. Have we done it the right way? No. We believe that our software development process is flawed. We (software developers) have convinced our clients that we can serve them well by providing quarterly or annual enhancements to our systems. This has gone on for many years. Unfortunately, software relies on good design, similar to building a house. 40-year old houses sometimes cannot be modernized. They need to be brought down and rebuilt.

There are many advantages to redesigning and rebuilding debt collection software:

  • You can take advantage of modern computer technology
  • You can address design deficiencies in the original product
  • Many years of development by different people means your product is complex and harder to maintain
  • New features are costlier and more complex to implement with old designs

We could say that one of the major pitfalls of debt collection software development is the fact that we often choose to persist with older designs and a set of dated programs. Yes, it is expensive to build a new system, but it may be more expensive to maintain and patch that old system too.