Online Resources Targets Smaller Clients for Collection Tool

Online Resources Corp. (NASDAQ: ORCC) has unveiled a new version of its online collections technology designed for small to mid-sized lenders, billers and receivables management companies.

Online Resources’ Virtual Collection Agent Advantage provides smaller first- and third-party collectors a secure web-based service for all types of delinquent debt. The service is integrated with CollectPay, Online Resources’ payment service. The company says the combination is designed to maximize consumer payment options and minimize processing costs.

The company’s web-based collection tool was initially developed for card issuers before expanding to the banking, billing and collections market. The newest release follows the company’s trend of targeting large customers first, then developing products and marketing strategies designed to attract smaller customers.

The new version of is based on the technology and best practices developed for the company’s “Command,” solution, which four of the top 20 U.S. card issuers and a top-3 U.S. receivables management company use, according to Online Resources.

Among the features of the new version are shared software hosting designed for fast implementation and to scale debt recovery efforts; self-management tools, consumer analytics, PCI-compliant security and full regulatory compliance.

Online Resources expects the new product to help build to a project $100 million in annual revenue in the next five years – a figure the company cited in its analyst day earlier this year. At the same time, the company said that it expected to exceed its previously announced 30 percent EBITDA margin in fiscal 2008 based on contribution from new products.

“As a leading biller service provider integrated across multiple industries, we are uniquely positioned to help our clients—including more than 150 receivables management clients gained through our acquisition of Integrated Transaction Solutions—proactively treat the rise in delinquencies they are seeing today,” said Robert R. Craig, executive vice president and general manager of Online Resources’ eCommerce services division.  “The Virtual Collection Agent represents our commitment to helping creditors and billers of all sizes collect more, at a lower cost.”