Now that the festive season is upon us and the end of year deadlines edge ever closer, it’s important to find time to reflect on the hard work and achievements from the past year. Over at Arum, we’ve been looking back on the changes that have made waves in Collections & Recoveries over the last 12 months and thinking about what the next year will bring.
Looking back at 2018
One of the most notable industry changes was the enforcement of the GDPR ruling, which came into effect on 25th May and impacts how businesses process and handle data. From a collections perspective, a change many may not have been prepared for is the impact GDPR has had around managing unstructured data. With Data Subject Access Request fees now being removed and a response turnaround time being enforced, having the appropriate solution and procedures is crucial. Read our full blog
IFRS 9 was rolled out on 1st January and replaced the IAS 39 standard. It reflects the changes in the accounting and business practices over the last two decades. The new standard includes credit loss provision observations, which means a review is now required of the collections operations and scenarios that would be triggered in the event of a hard Brexit. Read our full blog
Interest rate rise
The Bank of England raised the interest rate from 0.5% to 0.75%, the highest level since March 2009. This increase adds further strain to the population who are struggling with credit commitments as well as companies who will have to deal with increased debt delinquency age. Read our full blog
IT issues across the industry
A few major banks and telecommunications companies have fallen afoul of IT issues ranging from security to system migrations and implementation. As the landscape continues to evolve and embrace digital solutions, attention to detail is catching businesses off guard. These issues result in additional strain on contact centre agents, system resources and the IT team. Furthermore, it leads to reputational damage and fines. A robust planning and testing plan prior to system implementation can avoid this. Read our full blog
Government’s problem debt issues
A review by the National Audit Office (NAO) on tackling problem debt shone a light onto the extent of the debt owed to government and issues with current public sector collections practices. Read our full blog
Looking ahead to 2019
Turning our minds to the future, there are a few things carrying momentum into the new year that will continue to shape the industry as 2019 progresses.
Artificial Intelligence (AI) and Robotics (RPA)
Fintech continues to make its presence felt within the financial services industry and vendors will keep pushing the boundaries of what’s possible and create innovative solutions to benefit the sector. To ensure our clients are seeing these benefits within C&R, Arum has have partnered with Andrew Burgess, an expert and thought leader in the areas of artificial intelligence (AI) and robotic process automation (RPA). Read our full blog
Following a year of negotiations and discussions about the potential impact of Brexit, we will finally find out what’s in store for us. At Arum, we look forward to helping our clients with whatever the outcome will mean for them. If the impending decision is meaning you’re considering consolidating or relocating your collections operations, read our full blog.
New VAT rules
The ‘Making Tax Digital for VAT’ legislation will come into effect on 1st April 2019. VAT registered businesses with a taxable turnover exceeding the threshold will be required to apply. The impact of this will be businesses in scope will no longer be able to keep manual records. Digital records must be maintained in what is defined as functional compatible software that can connect to the HMRC Application Programming Interface (API). Arum can help to ensure that you have the required systems and that you’re prepared for the legislation coming into play.
A milestone year for Arum
2018 has been a pivotal year for us here at Arum as well!
This year marked our 20th anniversary helping our clients do a great job, and we announced our expanded range of services. View our full list of services
Arum has successfully achieved world-class, globally recognised ISO certifications for its consultancy, credit management, debt collections and recovery services across the UK. We also became Cyber Essentials certified which proves we are protected against cyber-based threats. Find out more
Arum has successfully secured places on both the Management Consultancy Framework Two (MCF2) and Digital Outcomes and Specialists 3 Framework (DOS3), both run by Crown Commercial Services (CCS). Along with the G-Cloud 10 framework, on which we have also been awarded a place, these enable a greater number of public sector organisations to utilise our experience and expertise. Find out more