Collections Industry Sees Significant Split Between Large and Small Firms’ Investments in Customer Contact Channels

CHICAGO, Ill. -- More than one in three (37%) collections firms are now using text/SMS messaging — a modest increase from last year when 31% were utilizing this communications channel with consumers. A different story emerges when broken out by large firms (100k or more accounts) and small firms (fewer than 100k accounts).  While more than half (56%) of large firms now utilize text/SMS messaging, only 17% of small firms have adopted the channel.

The findings were revealed today in the fourth annual industry report by TransUnion and Aite-Novarica, “Charting the Course and Steering Towards Success: The Collections Industry in 2022,” The report examines overall collections industry trends, challenges and opportunities and is informed by a survey of 140 third-party debt collection professionals conducted in Q2 and Q3 2022.

The report found that large firms continue to invest in solutions that create efficiencies within their compliance efforts for the Consumer Financial Protection Bureau’s Regulation F requirements. Meanwhile, small firms, likely constrained by budgets, are lagging this trend.