LexisNexis Risk Solutions Study Examines Mounting Pressures Collectors Face to Streamline Operations and Control Costs

03/27/2025

ATLANTA — The inaugural LexisNexis Risk Solutions State of Collections Study reveals that 58% of US collection agencies identify growing case complexity as a top challenge, driven by an increase in disputes, shifting consumer behaviors and evolving compliance demands. The findings in the commissioned study by Celent highlight how these pressures are reshaping the industry, pushing collectors to prioritize operational efficiency and control costs while navigating a transforming market.

The report examines respondents’ concerns about the future and reveals where they plan to focus their investments to enhance collection efforts. It also explores how banks and third-party institutions manage collection processes in response to rising delinquency rates and household debt.

“The findings in our study underscore the dynamic challenges reshaping the collections industry,” said Carrie Coker-Aivaliotis, senior director, servicing and recovery, LexisNexis Risk Solutions. “Collectors are facing heightened complexity, but they’re also responding with innovative strategies to adapt. The industry is rising to meet these demands by prioritizing data analytics, cloud technology and security while striving to enhance both operational efficiency and the customer experience.”

The study shows that 56% of first-party collectors prioritize the type and size of the loan when choosing outreach strategies, compared to 46% of third-party collectors. Meanwhile, 59% of third-party collectors focus on compliance requirements as the most important factor in their customer outreach efforts, more than the 47% of first-party collectors who do the same.

First- and third-party collectors prioritize different operational goals. When ranking their top two operational challenges, first-party collectors focus on improving collection agency portals and services (31%) and integrating additional services into operational workflows (19%).

In contrast, third-party collectors aim to reduce reliance on manual intervention for standard processes (38%) and address challenges with regulatory compliance and reporting (32%).

• Efficiency challenges: Enhancing collections efficiency remains a top priority for first- and third-party agencies. Sixty-one percent (61%) of first-party collectors and 51% of third-party collectors identify the ability to improve collections processes and systems with new capabilities as one of their biggest challenges.
• Strategic investments: Organizations plan strategic investments in data acquisition, security, fraud prevention and systems integration to boost efficiency. First-party collectors are more likely to use non-traditional credit data to enhance their scoring strategies, while third-party collectors focus on analyzing data to refine their litigation strategies. At least 50% of respondents are launching or planning investments in a wide range of capabilities grounded in data analytics.
• Compliance remains critical: Regulatory compliance and repayment program eligibility drive consumer engagement priorities. Staying ahead of regulatory and compliance requirements is among the biggest challenges facing 62% of third-party collectors and 49% of first-party collectors.
• Evolving communication strategies: Changing consumer preferences are behind the evolution of communication strategies. Online browsers, SMS and mobile notifications rank as the top digital priorities for 2025. However, only 19% of institutions can connect customers with live agents through digital platforms, highlighting a significant capability gap.

Download the LexisNexis Risk Solutions State of Collections Study.

Methodology
LexisNexis® Risk Solutions commissioned research and advisory firm Celent to conduct a survey of 156 US-based first- and third-party collectors including banks, credit unions, business process outsourcers, debt collection firms, debt buyers and third-party collection agencies to highlight the most pressing challenges facing the industry today and in the future. Survey respondents ranged in size from one employee to more than 100,000 with representation across the following asset classes: personal loans, Buy Now Pay Later (BNPL), credit cards, mortgages, home equity loans, student loans, auto/boat/RV loans, medical debt, government related debt and utilities.

About LexisNexis Risk Solutions
LexisNexis^® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.