Why FY25/26 Is the Year to Rethink Your Collections Strategy
The new financial year is the perfect time to take a hard look at what’s working and what’s not. And for many finance and operations leaders, collections and arrears management still rely on outdated processes, disconnected systems, and too much manual work. As customer expectations grow and regulations tighten, FY25/26 is the year to rethink your collections strategy and move toward automation, insight-driven workflows, and better outcomes for both your business and your customers.
Key Takeaways
- Legacy collections processes are holding businesses back in speed, compliance, and experience.
- FY25/26 brings new expectations around customer engagement, efficiency, and regulatory pressure.
- AI and automation tools can transform collections from a cost centre into a value-driving function.
- 365 Collect is a purpose-built platform that modernises the entire collections lifecycle.
- Rethinking your strategy now sets the tone for better recoveries and stronger customer relationships this year.
Why Traditional Collections Strategies Are Falling Short
Too manual, too slow
Legacy systems rely heavily on spreadsheets, manual outreach, and siloed case management. This slows down response times and delays recoveries, especially at scale.
Disconnected data
When teams rely on multiple tools that don’t talk to each other, they miss the full picture. This leads to inconsistent customer contact, missed follow-ups, and a lack of performance visibility.
Compliance risks are rising
With increasing scrutiny on responsible collections practices, it’s no longer enough to simply chase payments. Businesses must show they’re treating customers fairly, acting early, and maintaining clear records.
Poor customer experience
Inconsistent contact attempts, generic messaging, or aggressive outreach can damage your brand and erode trust. Customers expect the same level of empathy and personalisation they receive in other channels.
What’s Driving Change in FY25/26?
Shifting customer expectations
Today’s customers expect transparency, digital self-service, and proactive communication. A collections experience that feels outdated or disconnected puts the relationship at risk.
Economic pressure on households
With ongoing inflation, high interest rates, and rising cost of living, more customers are struggling to meet repayments. This increases arrears volumes and the need for smart, scalable solutions.
Tightening regulation
Regulators across financial services, utilities, and other sectors are demanding greater accountability in collections. Businesses must demonstrate they are identifying hardship early and engaging appropriately.
The rise of AI and automation
FY25/26 will be the year many organisations embrace AI not just in customer service, but in collections and credit operations. Tools like Microsoft Copilot, Power Platform, and Azure AI are unlocking new levels of speed, visibility, and personalisation.
Why Now Is the Time to Act
You can’t scale manual processes
As case volumes rise, your current approach may buckle under pressure. Automation enables you to handle more cases without sacrificing compliance or experience.
You’re missing insights from your own data
Disconnected systems bury the data you need to improve contact rates, understand customer behaviour, and optimise your strategies. A modern platform surfaces these insights in real time.
Delays cost more than you think
Every day a case goes unresolved adds cost to your operations and risk to your customer relationship. A faster, more intelligent approach helps you recover sooner and protect long-term loyalty.
What a Modern Collections Strategy Looks Like in FY25/26
Proactive, not reactive
Smart systems can predict customer risk earlier and trigger proactive engagement before issues escalate.
Omni-channel, consistent contact
Modern strategies include email, SMS, phone, and portal-based communications, all tracked and managed from a single system to ensure consistency and compliance.
Intelligent automation
Automated workflows handle routine tasks like reminders, escalations, or updates so your team can focus on high-touch cases.
Self-service for customers
Give customers access to payment plans, communication history, and resolution options through branded, user-friendly portals.
Built-in compliance
A best-practice system should log all contact attempts, automate audit trails, and escalate hardship flags automatically removing manual risk.
How 365 Collect Supports Smarter Collections
Built on Microsoft
365 Collect is built within the Microsoft ecosystem, giving you access to cutting-edge technology like Agentic AI and more. It integrates seamlessly with Dynamics 365, Power Platform, and Azure AI, delivering the flexibility, security, and scalability modern businesses need.
Automates your collections process
From first contact to final resolution, 365 Collect automates manual tasks and enables consistent case handling across every stage. No more spreadsheets, no more guesswork.
Real-time dashboards and insights
Managers get full visibility of team performance, recovery trends, and at-risk accounts, all in real time. AI models can flag high-priority cases and recommend next best actions.
Customer-first design
365 Collect puts empathy at the centre of collections. It enables personalised messaging, hardship detection, and respectful escalation paths, helping you collect without damaging relationships.
Scales with your business
Whether you’re handling thousands of cases or planning for growth, 365 Collect adapts to your needs. Add new channels, users, or workflows as your business evolves.
Watch: Hear how Kiwibank transformed their collections process
What to Consider When Rethinking Your Collections Strategy
Are your current tools scalable?
Can your systems handle growing case volumes without adding cost or complexity?
Are you meeting regulatory expectations?
Do you have clear audit trails, responsible contact practices, and hardship escalation paths?
Can you personalise the experience?
Are you segmenting customers and tailoring communications or using a one-size-fits-all approach?
How easy is it for customers to resolve issues?
Do you offer self-service options and accessible payment plans?
Do your teams have the insights they need?
Are your agents working blind or do they have clear visibility of the customer journey, case history, and next steps?
Frequently Asked Questions
What is 365 Collect?
365 Collect is a Microsoft-based platform that streamlines collections and arrears management. It automates tasks, provides insights, and ensures compliance across the full lifecycle.
Who is 365 Collect for?
It’s ideal for financial services, utilities, and other businesses that manage a high volume of receivables or overdue accounts.
How is 365 Collect different from CRM or billing systems?
It’s purpose-built for collections. While CRM tracks customers and billing handles invoices, 365 Collect manages the workflows, communication, compliance, and resolution of overdue cases.
Is 365 Collect customisable?
Yes. The platform is modular and can be tailored to your specific needs, including integrations, workflows, portals, and reporting.
Do I need to be using Microsoft tools to use 365 Collect?
No, 365 Collect can integrate with other systems using APIs and connectors.
Ready to modernise your collections strategy? Talk to the team at 365 Mechanix today.