Capital Management Services’ Larry Costa Shares Diversification Strategies on Receivables Podcast
At Capital Management Services (CMS), innovation and adaptability define how we serve clients. In today’s fast-changing collections and customer service environment, staying competitive requires forward-thinking leadership and strategies that go beyond traditional methods.
That’s why we’re proud to share that our President, Larry Costa, was featured on the latest episode of Receivables Podcast to discuss diversification strategies for collection agencies — a topic that directly reflects the CMS mission to deliver stability, compliance, and long-term growth for our clients.
In his conversation with host Adam Parks, Larry explains how CMS has evolved from a third-party collections agency into a multi-service provider offering first-party collections, seasonal call center campaigns, mortgage servicing, and more. This transformation didn’t happen overnight — it’s the result of deliberate planning, leveraging existing strengths, and building lasting client partnerships.
Diversification Is Core to Capital Management Services’ Strategy
For CMS, diversification means more than adding services — it’s about delivering consistent value to clients while ensuring operational stability.
As Larry shares in the episode:
“I migrate these people with the skill set into these first-party projects.”
This approach allows CMS to:
- Preserve and redeploy skilled staff
- Offer clients broader service capabilities without the delays of new vendor onboarding
- Maintain compliance and quality across all service lines
By aligning our service diversification with client needs, CMS has created a balanced revenue model that sustains growth even when market conditions change.
3 Takeaways from Larry Costa’s Podcast Discussion
1. Expanding Services Within Existing Client Relationships
Rather than waiting for new business through lengthy RFP processes, CMS works with existing approved clients to identify additional service needs.
- First-party mortgage collections
- Fraud and loss mitigation
- Credit card activation and customer service
This strategy strengthens partnerships while providing immediate, measurable value.
2. Leveraging Seasonal and Episodic Campaigns
CMS fills operational downtime with high-margin seasonal work such as health insurance open enrollment outreach or welcome calls during mortgage servicing portfolio transfers, which:
- Maximizes agent utilization
- Generates premium short-term revenue
- Keeps teams engaged year-round
3. Integrating Digital Transformation Into Diversification
Digital communication tools like SMS, email, and chatbots free agents from low-value calls, allowing them to focus on complex or high-value interactions. This technology-driven approach supports both diversification and efficiency.
For more on CMS’s technology strategy, visit our Customer Contact Services page.
Why This Matters for the Industry
The debt collection industry is adapting to new compliance rules, consumer preferences, and technology-driven processes. Agencies that rely solely on third-party collections risk being left behind. CMS’s model shows how strategic diversification:
- Builds revenue stability
- Increases client retention
- Creates career paths for skilled employees
- Supports compliance across all services
FAQs About Capital Management Services and Diversification
Q1: What diversification strategies does Capital Management Services use?
A1: CMS expands into first-party collections, seasonal call center projects, and mortgage servicing while maintaining compliance and service quality.
Q2: How does CMS’s diversification benefit clients?
A2: Clients gain access to a broader set of services without the delay of onboarding new vendors, improving speed to market and consistency.
Q3: How is digital transformation part of CMS’s diversification?
A3: CMS uses digital tools to increase agent productivity, enabling their redeployment into high-value diversified services.
