Phone calls and letters are still going strong in debt collections, but outreach via digital channels such as text and emails is gradually creeping up.

So is the use of artificial intelligence and machine learning to target consumers in a more palatable way.

Several fintechs that operate as digital-first or technology-enabled debt collections agencies, including TrueAccord, January, and InDebted, use data-driven models to fine-tune their outreach to borrowers who are delinquent on debt based…