Why Tech-Savvy Debt Collection Agencies Get Better Results

The debt collection industry has long had a reputation for using outdated, aggressive tactics that turn off consumers. However, a new breed of technologically advanced agencies is changing the game by using modern digital communications like SMS text messaging.

Here are a few key ways tech-forward collection agencies outperform traditional ones:

1. They meet consumers where they are - on mobile. Over 90% of people now use smartphones as their primary communication device. Smart agencies have adapted by using SMS texting and mobile-friendly websites/portals to make it easy for consumers to engage how they prefer.
2. More responsive service. Consumers expect fast responses in today's on-demand world. With automated SMS text workflows, agencies can instantly acknowledge inbound messages and quickly resolve issues compared to relying on faxes and snail mail.
3. Higher engagement rates. Millennials and younger generations vastly prefer texting over calling. SMS texting typically generates 4-8x higher engagement rates for collections than traditional calling/mailing.
4. Maintain compliance. AI and machine learning models can automatically scrub text messages to redact sensitive data and ensure compliance with evolving regulations like CFPB guidelines.
5. Boost productivity. Automating initial outreach and basic inquiries via text allows agents to focus on more complex issues, becoming more efficient and effective.

The bottom line is that by embracing technologies like SMS texting and intelligent software, debt collection agencies create a vastly better experience for consumers. This builds more trust, increases engagement/payments, and improves business results.

Those clinging to legacy tactics and shunning innovation will only fall further behind. The agencies of the future are high-tech and customer-focused.