Why is it easy to applaud innovation but, for many of us, not as easy to apply? As a business leader, particularly in a SAAS industry, that’s an ironic observation I encounter a lot. Especially when it comes to new technologies and automation, there’s been a gaping disconnect between recognizing value and investing in it. Decisions around technology are complicated. It takes time, money, research, and trust to apply new technologies in any business.

It also takes letting go of the we’ve always done it this way mentality.

Even when technology is designed to make life easier and business more profitable and secure, if you don’t educate yourself on the technology and resources, you’re putting your business at risk.

Back in the Day

Before Collection-Master made its mark in the industry, law firms received all claims by snail mail. Employees would manually sift through them one at a time along with all of the accompanying documentation. Early electronic client communications certainly weren’t bi-directional. The larger volumes of consumer claims were in proprietary formats requiring special readers and a lot of custom programming. This process marked the industry’s first use of EDIs (electronic data interchange).

Status reports were printed on that continuous green and white bar paper using dot matrix printers, a sophisticated process for the time. The paperless concept didn’t exist, and accounts were managed in physical folders and stored in large filing cabinets – that’s where the term FILENO (File Number) originated.

For better or for worse, life was slower “back in the day”, in part, because processes were manual. But change and innovation were also brewing. Industry visionaries like Luis Gomez, John Currey, and Kurt Sund came onto the legal recoveries scene, revolutionizing processes through automation and catapulting technologies to a whole new level.

Time has been so generous with technological advances that it can be challenging to keep up with the pace. But now that compliance requirements and regulations have such a stronghold on the industry, it’s crucial to stay engaged and not rely on outdated business practices.

Current Situation

Thankfully, innovation doesn’t wait for the change averse. While it’s important to slow down in some aspects of life, even in business, when it comes to lowering your costs to collect, momentum and productivity are everything.

For more than four decades, Vertican’s advancements in technology have given industry players access to unprecedented levels of efficiency and automation: think of vExchange Gates, Vertican File and Serve (VTFS), and Q-LawE’s Job Scheduler and its Data Driven Automation System (DDAS). Our team has paved the innovation road so that our clients can streamline workflows while reducing human errors and compliance risks. Thanks to forward-thinking and -doing, we can collectively focus on building a healthier collections ecosystem … and scaling our businesses.

The Risks of Manual Processes

A common pain point we hear from our users involves manually editing remittance reports to adhere to clients’ reporting requirements rather than relying on VT software to do the work. These firms have FTEs who manually edit and manipulate data month after month. The excessive consumption of time is not the only issue; employing staff to manipulate and reformat hundreds of financial transactions is a financial and compliance disaster waiting to happen. Manual processes are highly prone to errors, which can ripple through the entire legal process. Incorrect data, even a typo or misplaced decimal, can lead to a chain reaction of miscommunications, missed deadlines, and even legal consequences.

Not running remittances through vExchange is another example. Using vExchange gives Senders what they need in one simplified, centralized place without redundant processes and reports, and enables everyone to leverage their data. When Receivers post payments and run remittances in vExchange, their Senders will then be able to run the reconciliation reports from vExchange Analytics. All the information is available right there for them and their Senders. Plus, when Receivers send remittances through vExchange, Senders will receive everything in one glorious file.

Another detrimental business practice we see is where Senders request that their Receivers build custom workarounds to process data. While their short-term goal is to get the data,  this practice ultimately increases workload for both the Receivers and their clients. For example, a vExchange Sender recently requested reconciliation reports from its VT Receivers. Rather than using vExchange, Receivers sent the reports outside the vExchange system, such as ftp, email, and even outsourcing to a vendor. Additionally, the Sender then needed to manually, and painstakingly, consolidate and enter the data into their system to reconcile. Why? For one, having come from the YGC world, the law firms and Sender were unaware that vExchange by design already has what they need.

You Don’t Know What You Don’t Know

So why do firms go rogue when solutions are built right into the software? In part because, back in the day, YGC didn’t offer the necessary components for reconciliation, remittance, and compliance. Some firms try to keep their clients happy at all costs, resulting in a complacent cycle of not applying the robust innovation already built into vExchange.

Many clients are shedding the YGC mindset and Senders need to be more connected to the developments in vExchange around leveraging data for accounting, compliance, and business planning.

I encourage our vExchange users to trust and leverage their own data and to be more open to the functionalities available at their fingertips every day. Incidentally, Senders using the YGC business adapter are especially missing out on all the enriched data and analytics that vExchange has to offer. That’s why we built the vExchange Native adapter.

Most users are not deliberately resistant to change; they’re just not aware of all the tools baked into our products. That’s why the Vertican team regularly points out the availability of support and resources through our communications, conversations, and software in-app messaging (CCAM). We also offer valuable opportunities to take product utilization to the next level through Professional Services and Consulting. Every day, VT subject matter experts personally guide firms with training and consulting, helping them stay up-to-speed with current and emerging technologies. And don’t forget all the complimentary learning videos and tutorials, this newsletter, and comprehensive resources and documentation in the Help Center!

Rearview Mirrors are for Driving … your car

There’s a misconception in our industry where people believe they must abdicate their control to apply automation in their business processes. This couldn’t be farther from the truth. Automation improves efficiency by handling routine tasks so that your team can focus on other things. For example, Universal Gates’ robust automation is driven by the rejection and exception rules set by the Senders. Such well-defined automation enables clients to be more agile and intercede when and where they need it.

Even in a self-driving car, you remain in control, turning the wheel and pressing the brake at your discretion. The technology is there to assist but not replace your judgement while still getting you where you want to go.

So, while it’s nice to slow down in some areas, make no mistake, the legal industry is exponentially evolving, and so is Vertican. The risks and costs associated with relying on outdated, manual processes are too far-reaching to ignore. It is time to examine your position on applauding versus applying new technologies more closely.

All I ask is that you trust and partner with VT, focus on the road ahead, and use your rearview mirror for driving your car, not your business.