SWBC Collections Success Story | FAIRWINDS Credit Union
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An Outsourced Collections Success Story: FAIRWINDS Credit Union

Learn how FAIRWINDS Credit Union’s delinquency rates decreased by 75% over a 5-year period after outsourcing their collections activity to SWBC.

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After outsourcing their early-stage collections to SWBC, FAIRWINDS Credit Union’s delinquency rates decreased by 75% over a 5-year period.

SUCCESSES

    More manageable collection queues
    Delinquency decreased by 75% over a 5-year period
    Asset quality increased by 80% over a 5-year period
    Increased overall risk management efficiencies due to 

           integrated services

THE CHALLENGE

In 2007, FAIRWINDS CU saw a drastic increase in delinquent accounts at the height of the Great Recession. Faced with either hiring additional full-time staff, bringing in temporary staff, or seeking a partner to handle their collections needs, they decided to outsource early-stage collections to SWBC.

Like many organizations and individuals alike, FAIRWINDS CU weathered the storm of a struggling economy and has come back stronger than ever. As the economy began to improve post-recession, FAIRWINDS began reallocating resources back into production areas, and streamlined workflows and processes to be as efficient as possible. However, this caused some new, unique challenges.

Internally, their biggest challenge was forecasting their budget over this time frame, particularly charge-offs, as they have a direct impact on the bottom line. If they are too conservative, their allowance/provision would be overfunded, but if they’re too aggressive, they risk being underfunded.

Learn how SWBC’s flexible, compliant, cost-effective service could help your institution lower delinquencies and cut your collections costs.

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THE SWBC SOLUTION

FAIRWINDS CU engaged SWBC to help them overcome their collections challenges. “There were a few motivators for choosing SWBC: Calls are made after-hours and weekends; they use better technology to streamline the collection process; and we gain access to an experienced, dedicated collection staff. SWBC was also a lower cost alternative to hiring or replacing internal employees,” said Steve Plotkin, Vice President of Collections at FAIRWINDS CU.

Since that time, FAIRWINDS CU has fully integrated the suite of SWBC risk management products into the credit union. “We utilize the full suite of risk management programs including Payment Processing, Collateral Protection Insurance Programs (CPI & Lender-Placed Insurance), Asset Recovery, and Collections. SWBC is a key strategic partner of the credit union,” said Plotkin.

By using SWBC’s collection services, FAIRWINDS experienced a substantial decrease in delinquency. In 2013, their delinquency rate was 2.30%, and by 2018, it had decreased to 0.59%. “More importantly, our asset quality has improved from 3.70% to 0.75% in the same time frame,” said Plotkin.

A Win-Win

Plotkin said that the greatest benefit they have experienced by using SWBC’s collection services is the convenience and the fact that it takes so much time off his employees’ hands. “It’s an extension of my collections department, which allows us to operate 8 a.m.—9 p.m. weekdays and weekends. We would never be able to do this with existing staffing levels.”

Also, because of the reporting functionality available through the collections platform, Temenos, FAIRWINDS CU knows how they are performing at any given time, and they use the reporting tools to measure their internal staff, which provides accountability throughout the collection process.

Likewise, the platform allows FAIRWINDS CU’s staff to quickly and efficiently make it through their work queues. “Collectors routinely finish their queues because using SWBC’s products has made their job more efficient. Collectors never have to leave the framework, allowing them to complete tasks very quickly,” said Plotkin.

“SWBC employees are always there to resolve issues and answer any questions, and they have the flexibility to meet our changing needs and customize an approach exclusive to our credit union. SWBC has far exceeded our expectations with their commitment to excellence. They even take on added queues when we are short-staffed or in an emergency. 

On a scale from 1–10, our experience with SWBC has been a 10. This partnership is second to none.” 

–Steve Plotkin, VP of Collections, FAIRWINDS Credit Union.






He went on to add, “The people at SWBC are so professional and committed to providing excellent service. It doesn’t matter who I speak with, the level of commitment is the same.”

“SWBC is a key strategic partner of the credit union. We value the relationship and appreciate all of the support provided to us. I am looking forward to continuing to strengthen our relationship and implementing enhancements to make the credit union even more efficient,” said Plotkin.

A Key Strategic Partner

Another advantage FAIRWINDS CU found to the partnership with SWBC is how dedicated the staff is to supporting their credit union. “SWBC employees are always there to resolve issues and answer any questions, and they have the flexibility to meet our changing needs and customize an approach exclusive to our credit union.”

“SWBC has far exceeded our expectations with their commitment to excellence. They even take on added queues when we are short-staffed or in an emergency situation,” said Plotkin.

In Conclusion

When asked to rate FAIRWINDS Credit Union’s overall experience with SWBC, Plotkin replied, “On a scale from 1–10, our experience has been a 10. We have been extremely happy with the suite of SWBC risk management products. Both SWBC and FAIRWINDS Credit Union’s management share the same desire for improved efficiencies, reduced expenses, and increased revenue. This partnership is second to none.”

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