Connectivity is a basic assumption, are we ready for mobile in the credit and collections world?
In part I of my Credit Limit Policy and Delegation of Authority blog series, I discussed the importance of distributing authority and responsibility. In part II, I will touch upon the importance of mobile in our daily lives and whether we are ready to use it in our credit risk management processes.
Twenty years ago, the first month of my senior year, I connected my desktop to the university network via a local dial up number and was using Lynx, a text based browser. WiFi was not yet in the human vernacular. After graduation, a friend bought his first cellular phone the size of a small brick, paying $35 a month for 30 minutes of service.
Fifteen years ago, on my first day on the job at a software company, I was issued a laptop and a Nokia phone and I considered myself mobile. Eight years ago, I was issued my first BlackBerry 7501t (with the side rolling wheel before the trackball and touchpad) and was blazing along on EDGE network. In July 2012, I received my first smartphone, a Samsung Galaxy S3, riding on 4G LTE. Each time I touched new technology I was in wonder and amazement. Each time brought a new definition of what it means to be “mobile”.
I often am in discussions regarding how mobile will influence the business processes surrounding credit and collections management. In the consumer circles, we exist in a world where we make an online purchase and monitor the progress from time of order up to the time it is delivered to our front door…. all from our miniature devices which fit in my shirt pocket and which are more powerful than my twenty year old desktop.
Today, connectivity is a basic assumption of personal and business life. In the near term there are some conventional associations we can make on how mobile can impact Receivables Management and the Order-to-Cash process. A common one is: how does the credit and collections team include and influence participation in the Credit Limit approval process.
In my previous article, we discussed how other folks such as a Managing Director or Financial Director participate in the approval process; especially if these roles are constantly on the move. Is it time to provide the visibility, the notification, and the actionable approvals via a smartphone?
Defining the Delegation of Authority in credit risk management and its associated routing is one endeavor; executing and ensuring participation from the people assigned to take action is another endeavor and one very much worth exploring and investing in.
Can you envision an environment where your organization can review, comment, approve, and request additional information on Credit Limit changes at the speed that business happens in? I’d like to hear from you.
