When systems don’t come with a "ctrl+z" – how does your servicing software handle updates to past data?

Ever had an agent go “oops”? Or gotten a call from someone who is panicked about a missed payment? How about a customer’s purchase dispute getting resolved in their favor? All of these can happen, and when they inevitably do, can your system handle retroactive reconciliation in an automated way?

Unfortunately, many companies face significant back and front office challenges with their existing systems. It’s no easy feat for operations, finance or engineering teams to go back in time to update and reconcile account changes. Changes could mean a variety of things, such as the need to update an interest rate (e.g. SCRA, promotion terms, offers, etc.), or back-date payment dates, or defer a payment, or many more necessary actions. The challenge is making such changes while the loan management system automatically recalculates and adjusts to reflect the new due balance, due dates, payment splits or payment schedules.

Human error, new government regulations, hardship support, or complex refinancing necessitate that systems have the flexibility to change past events—be it a day past or years ago. All of these scenarios push the capabilities of systems to be fault tolerant—and when systems can't keep up, it leads to lost revenue and damaged reputations. Servicing systems must be robust enough to handle real-world scenarios like misplaced payments, regulatory compliance, and offering customer support in a reliable and automated way.

Ultimately, customer experience suffers when inflexible systems cannot meet real-life expectations. Studies show that even one negative experience—like a missed payment fee when the check was lost in the mail, or an agent entering in the wrong payment amount during a phone call—can drive customers away. Systems that cannot flex around real-life scenarios aren’t just putting current revenue at risk, but future revenue, too. Here are some key stats to consider for how impacting customer experience can change revenue growth opportunities:

• According to one of the most well-quoted surveys from American Express, service is the competitive advantage for companies looking to succeed with consumers. ¹
• A Forrester Research study revealed that 63% of customers would abandon a company after a single negative experience. ²
• A PWC study found that 92% of people will leave a company after just two or three bad interactions. ³
• Companies invest time and energy into great customer experiences — and yet studies like these show that it only takes a couple of interactions to potentially negate it all. Having options to change past events helps protect the customer's present relationship, and future cross-sell opportunities, with your company.

Of course, such flexible options must still protect your company’s interests, lower risks, and avoid service delays due to manual calculations or agent escalations. A modern servicing platform that’s considered this need can save your developers and engineers hours in development, testing, and remediation over time.

That’s why Peach built Loan Replay™—a process that lets you service accounts retroactively without the need for manual recalculations or delays in real-time problem solving. We understand that sometimes changes need to be made, but that change doesn’t mean erasing audit history. We’ve built in processes to change past events, save the historical information, and reflect the changes as the present state of the account.

Let Peach show you how we can help your system become fault tolerant and lower risk with our Adaptive Core™ and Loan Replay capabilities – contact us today.