More Than Half of Debt Collection Companies Saw Increased Volume of Accounts in Past 12 Months
TransUnion (NYSE: TRU) has released its sixth annual debt collections report, revealing that 52% of debt collection companies experienced increased account volumes in the past 12 months. While 62% expect better financial positions next year, companies face challenges with decreased collectability since 2020 and rising concerns about data security and compliance.
The report highlights significant technological investments, with AI adoption growing from 11% in 2023 to 18% in 2024. Top AI applications include account segmentation (57%), payment outcome prediction (57%), and self-service negotiations (56%). Traditional communication methods remain dominant, with letters (87%) and telephone calls (86%) leading, followed by email (74%). Notable trends include a 24% decline in credit bureau data furnishing and increased adoption of online payment portals, rising from 79% to 88%, with 25% of companies collecting over 40% of payments through this channel.
TransUnion (NYSE: TRU) ha pubblicato il suo sesto rapporto annuale sulle riscossioni dei debiti, rivelando che il 52% delle aziende di riscossione debiti ha registrato un aumento dei volumi di conto negli ultimi 12 mesi. Sebbene il 62% si aspetti miglioramenti nella posizione finanziaria l'anno prossimo, le aziende devono affrontare sfide legate alla diminuzione della riscossione dal 2020 e a crescenti preoccupazioni riguardo alla sicurezza dei dati e alla conformità.
Il rapporto evidenzia significativi investimenti in tecnologia, con l'adozione dell'IA che cresce dall'11% nel 2023 al 18% nel 2024. Le principali applicazioni dell'IA includono la segmentazione degli account (57%), la previsione degli esiti dei pagamenti (57%) e le negoziazioni self-service (56%). I metodi di comunicazione tradizionali rimangono dominanti, con lettere (87%) e telefonate (86%) al primo posto, seguiti dalle email (74%). Tra le tendenze significative si segnala una diminuzione del 24% nella fornitura di dati delle agenzie di credito e un aumento dell'adozione di portali di pagamento online, passata dal 79% all'88%, con il 25% delle aziende che raccoglie oltre il 40% dei pagamenti tramite questo canale.
TransUnion (NYSE: TRU) ha publicado su sexto informe anual sobre la cobranza de deudas, revelando que el 52% de las empresas de cobranza experimentaron un aumento en los volúmenes de cuentas en los últimos 12 meses. Mientras que el 62% espera mejorar su posición financiera el próximo año, las empresas enfrentan desafíos debido a la disminución de la cobrabilidad desde 2020 y crecientes preocupaciones sobre la seguridad de datos y el cumplimiento.
El informe destaca las inversiones tecnológicas significativas, con la adopción de IA que crece del 11% en 2023 al 18% en 2024. Las principales aplicaciones de IA incluyen la segmentación de cuentas (57%), la predicción de resultados de pagos (57%) y las negociaciones de autoservicio (56%). Los métodos de comunicación tradicionales siguen siendo dominantes, con cartas (87%) y llamadas telefónicas (86%) a la cabeza, seguidas por correos electrónicos (74%). Entre las tendencias notables se incluye una disminución del 24% en la provisión de datos de agencias de crédito y un aumento en la adopción de portales de pago en línea, pasando del 79% al 88%, con el 25% de las empresas que recopilan más del 40% de los pagos a través de este canal.
TransUnion (NYSE: TRU)는 여섯 번째 연간 채무 수집 보고서를 발표하며, 채무 수집 회사의 52%가 지난 12개월 동안 계정 수가 증가했다고 밝혔습니다. 62%는 내년에 더 나은 재무 상황을 기대하고 있지만, 회사들은 2020년 이후 징수율 감소와 데이터 보안 및 준수 문제에 대한 우려로 어려움을 겪고 있습니다.
보고서는 AI 도입이 2023년 11%에서 2024년 18%로 증가하는 등 상당한 기술 투자에 대해 강조합니다. 주요 AI 응용 프로그램으로는 계정 세분화(57%), 지급 결과 예측(57%), 자기 서비스 협상(56%)이 포함됩니다. 전통적인 커뮤니케이션 방법은 지배적이며, 편지(87%)와 전화 통화(86%)가 선두를 차지하고, 이메일(74%)이 뒤를 잇습니다. 주목할 만한 트렌드는 신용 정보 제공 감소가 24% 감소했고, 온라인 결제 포털의 채택이 79%에서 88%로 증가하였으며, 25%의 회사가 이 채널을 통해 40% 이상의 결제를 징수하고 있다는 점입니다.
TransUnion (NYSE: TRU) a publié son sixième rapport annuel sur le recouvrement de créances, révélant que 52 % des entreprises de recouvrement ont connu une augmentation des volumes de comptes au cours des 12 derniers mois. Bien que 62 % s'attendent à une meilleure situation financière l'année prochaine, les entreprises sont confrontées à des défis liés à la diminution de la recouvrabilité depuis 2020 et à des préoccupations croissantes en matière de sécurité des données et de conformité.
Le rapport met en lumière des investissements technologiques significatifs, avec l'adoption de l'IA passant de 11 % en 2023 à 18 % en 2024. Les principales applications de l'IA comprennent la segmentation des comptes (57 %), la prévision des résultats de paiement (57 %) et les négociations en libre-service (56 %). Les méthodes de communication traditionnelles restent dominantes, avec des lettres (87 %) et des appels téléphoniques (86 %) en tête, suivies par les courriels (74 %). Des tendances notables incluent une baisse de 24 % de la fourniture de données par les agences de crédit et une adoption accrue des portails de paiement en ligne, passant de 79 % à 88 %, avec 25 % des entreprises recueillant plus de 40 % des paiements par ce canal.
TransUnion (NYSE: TRU) hat seinen sechsten jährlichen Bericht über die Schuldeneintreibung veröffentlicht und dabei festgestellt, dass 52 % der Unternehmen für Schuldeneintreibungen in den letzten 12 Monaten ein erhöhtes Konto verzeichnet haben. Während 62 % im nächsten Jahr mit einer besseren finanziellen Lage rechnen, stehen die Unternehmen vor Herausforderungen aufgrund einer seit 2020 sinkenden Eintreibungsrate und zunehmender Bedenken hinsichtlich Datensicherheit und Compliance.
Der Bericht hebt bedeutende technologische Investitionen hervor, wobei die Einführung von KI von 11 % im Jahr 2023 auf 18 % im Jahr 2024 steigt. Zu den wichtigsten KI-Anwendungen gehören die Kontosegmentierung (57 %), die Vorhersage von Zahlungsergebnissen (57 %) und Selbstbedienungsverhandlungen (56 %). Traditionelle Kommunikationsmethoden dominieren weiterhin, wobei Briefe (87 %) und Telefonanrufe (86 %) führend sind, gefolgt von E-Mails (74 %). Auffällige Trends sind ein Rückgang von 24 % bei der Bereitstellung von Daten durch Kreditbüros sowie eine zunehmende Akzeptanz von Online-Zahlungsportalen, die von 79 % auf 88 % gestiegen ist, wobei 25 % der Unternehmen über 40 % der Zahlungen über diesen Kanal eintreiben.
- 52% of debt collection companies saw increased account volumes
- 62% of companies expect improved financial position
- AI/ML adoption increased from 11% to 18% YoY
- Online payment portal adoption grew from 79% to 88%
- 25% of companies collect over 40% of payments through online portals
- Decreased collectability trend since 2020
- Rising data security and compliance concerns
- 24% decline in credit bureau data furnishing usage
Insights
The surge in debt collection accounts amid declining collectability presents a complex market dynamic that directly impacts TransUnion's revenue streams. The 52% increase in account volumes coupled with enhanced tech investments signals a transformative phase in the collections industry. The 62% optimistic outlook for improved financial positions suggests potential growth in TransUnion's data services revenue.
The shift toward digital transformation, particularly the 7% YoY increase in AI adoption (from 11% to 18%), indicates a strategic pivot that could significantly enhance operational efficiency and profit margins. The 24% decline in credit bureau data furnishing usage is concerning, as it could impact TransUnion's core credit reporting business. However, this is partially offset by the growing adoption of digital communication channels, with email usage up 6% and online payment portal adoption increasing from 79% to 88%.
The accelerating AI/ML adoption in the collections industry reveals a significant market opportunity for TransUnion's data analytics solutions. The focus on predictive analytics for account segmentation (57%) and payment outcomes (57%) aligns perfectly with TransUnion's core competencies in data intelligence. The rapid transition from no AI plans to active consideration by nearly half of previously hesitant companies indicates a major market shift.
The evolution of communication channels, particularly the increased adoption of digital solutions like TruContact™, positions TransUnion strategically in the digital transformation journey. The 88% adoption rate of online payment portals, with 25% of companies processing over 40% of payments through this channel, demonstrates strong digital payment infrastructure development. This trend supports TransUnion's investment in digital solutions and validates their technology-forward strategy.
TransUnion research finds shifting preferences in communication channels and increased investments in AI tools
CHICAGO, Jan. 15, 2025 (GLOBE NEWSWIRE) -- More than half (
However, the volume increase for new accounts has been coupled with a decrease in the collectability—a trend that has been underway since 2020. In addition, there are rising concerns about data security and compliance with government regulations.
These challenges are prompting
“Growing collections businesses are better positioned to take advantage of new technologies available in the market,” said Manny Plasencia, senior director of TransUnion’s third-party collections business. “Utilizing data to drive the right approach in a rapidly changing environment is becoming more impactful to recovery and collections performance than ever. Those that do will be able to unlock efficiencies in both contacting and collecting their accounts.”
Investing in AI
Among the fastest growing changes for debt collectors is with the use of artificial intelligence (AI) and machine learning (ML). Almost half of companies that had no plans to use AI/ML technology in 2023 are now considering third-party or in-house solutions.
The number of debt collectors investing in AI/ML grew from
Comms channels begin to shift
Standard methods, like letters (
Email communications (
Only
The investment in more digital communications channels is helping to drive a shift in payment processes. SMS/text and email communications generally drive the consumer to the online payment portal to facilitate collecting payments with minimum human friction.
The number of debt collection companies using a self-service online portal for consumers increased from
TransUnion’s TruContact™ Trusted Call Solutions can help debt collectors determine the best time and channel for reaching consumers. In addition, Branded Call Display lets the consumer know that the call is legitimate and can facilitate the collections process by explaining the purpose of the call.
Read the full report Preparing for Opportunity: Investing in Efficiency to Scale Operations.
About the research
To collect the information used to gain the insights in this report, a survey was conducted in Q3 2024 that included 225 debt collection professionals representing different disciplines of receivables management: creditors, debt buyers, collection agencies, collection law firms, BPO firms and other supporting organizations. In addition to the survey, this report also incorporates findings from secondary research pertaining to the debt collection industry’s economic indicators, as well as consumer credit trends to provide additional context. Respondents in the 2024 survey represented a slightly different group of debt collection company types, with
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business
| Contact | Dave Blumberg TransUnion |
| david.blumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
What percentage of debt collection companies saw increased account volumes in 2024 according to TransUnion (TRU)?
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How has online payment portal adoption changed from 2023 to 2024 in debt collection (TRU report)?
What percentage of debt collection companies expect better financial positions next year (TRU study)?
