Why Digital-First Collections Beat Legacy Phone Calls

Collections Has a Channel Problem

Most people under 40 live on their phones, but they are not picking up calls, especially from unknown numbers or collection agencies. For a generation that messages, taps, and swipes through life, forcing a phone call–only collections model is like speaking a language they no longer use.

Studies show Gen Z and millennials overwhelmingly prefer digital channels such as email and instant messaging, with only a small fraction seeing phone calls as a good use of their time. At the same time, younger adults are using credit more frequently in everyday life, creating more accounts, more transactions, and more opportunities for delinquency than in previous generations.

The Decline of Phone Calls in Debt Collection 

Only a minority of younger consumers still see value in phone calls for communication. Research highlights that three‑quarters of millennials actively avoid phone calls, often describing them as disruptive, stressful, and inefficient. Among 18–25‑year‑olds, just a small share prefer phone calls, while the majority choose messaging apps and texts instead.

This phone avoidance is not just a preference; it is a behavioral shift. Many younger borrowers experience “phone anxiety,” feeling pressure and discomfort when answering or making calls, especially about sensitive topics like money and debt. When a collections strategy depends on live calls, it collides directly with this anxiety and dramatically reduces response rates.

How Smartphones Are Blocking Legacy Collection Calls 

Modern smartphones and operating systems add another obstacle for traditional call‑only collection strategies. Android and iPhone ecosystems increasingly screen, label, or block suspected spam and unknown callers before the phone even rings. Caller reputation systems identify numbers associated with nuisance or high‑volume calls and filter them out automatically.

For legacy collection agencies that rely on dialers and outbound call campaigns, this means more calls never reach a human at all. As device‑level protections become smarter and more aggressive, each additional call delivers lower marginal value, higher costs, and more consumer frustration among the few who do pick up.

Digital-First Consumers, Everyday Credit, and Rising Delinquency 

Younger generations are more credit‑active in everyday life than previous cohorts. A large majority of credit‑active Gen Z consumers already hold at least one credit card, and many use credit for dining, shopping, and small discretionary purchases, not just big‑ticket items like cars or homes.

This shift means lenders are managing more frequent, smaller transactions across a broader base of younger borrowers. As balances accumulate across multiple cards and buy now, pay later products, the chances of missed payments and delinquency naturally increase. At the same time, these same consumers are the least likely to respond to a traditional collections call, creating a growing gap between risk exposure and contact effectiveness.

Why Digital-First Debt Collection Works Better 

Digital‑first debt collection aligns with how modern borrowers actually communicate. Instead of relying on intrusive calls, it uses email, SMS, in‑app messages, and self‑service portals to reach consumers on their own terms. Borrowers can review balances, explore options, and make payments without the embarrassment or stress of a live collections conversation.

Many people find it emotionally easier to interact using digital channels when discussing financial difficulties. This lowers the psychological barrier to engagement and increases the likelihood that a delinquent customer will respond, ask questions, and ultimately resolve their account. Digital channels also allow you to personalize tone, timing, and offers at scale, which is difficult to reproduce over the phone.

From Ignored Calls to Measurable, Scalable Results 

Phone‑only strategies are not just unpopular; they are increasingly invisible due to call blocking and screening. Digital communication, by contrast, is authenticated, trackable, and far easier to optimize. You can test subject lines, message flows, and repayment options, then measure open rates, click‑throughs, and payment completion to continuously improve performance.

For lenders and enterprises, digital‑first collections unlock better reach, a better customer experience, and better recovery rates. You communicate in the channels younger borrowers actually use, give them control over how they resolve their obligations, and build a more compliant, data‑driven operation that can scale as credit usage grows. Remaining phone‑only does not just feel outdated; it leaves revenue and customer goodwill on the table in a market where digital is now the default.

Unifin Makes Repayment Clickable

Unifin sits right at the intersection of these shifts, where today’s digital‑first borrowers, smarter devices, and rising everyday credit use are rewriting the rules of collections. Instead of relying on calls that go unanswered or get blocked, Unifin has already embedded omnichannel, self‑service, and digital driven workflows into its day‑to‑day operations, so resolving a past‑due balance feels more like using a modern app than dealing with a traditional collection agency.

For clients, that means a tech‑forward partner who is not experimenting on the edges, but actively putting digital‑first best practices into practice, reaching customers in the channels they prefer, giving them more control over how they pay, and aligning recovery strategies with where the market is clearly headed.