Navigating the changing tide in collections
The economic pressures facing lenders are widely shared. The outcomes aren’t.
New independent research reveals a market moving at different speeds, and raises an important question about the role technology could play in the future of collections.
The same pressures. Different outcomes.
Affordability pressures, economic uncertainty and financial hardship continue to shape the lending environment. At the same time, collections teams are balancing increasing customer expectations, regulatory requirements and continued pressure on operational capacity.
Yet the impact isn’t being felt equally.
Research commissioned by Aryza and GoCardless found significant differences in how lenders are experiencing late payments – and some equally striking differences in how they are adopting technology.
The economic tides affect everyone. The organisations making the greatest progress are investing in technology that helps them navigate changing conditions with confidence.
What the research tells us
The increase in late payments isn’t evenly distributed
Across the market, the proportion of loan repayments reported as late increased from 9.3% to 11.5% over the past 12 months – an increase of 24%.
But the headline number hides a striking difference.
Lenders with an annual turnover of £250m+ reported almost no movement, with late payments increasing by just 1%.
For the two smaller turnover cohorts, the increase was 27% and 28%.
Same economic environment.
Very different reported outcomes.
AI adoption reveals another difference
AI adoption in collections is already widespread. 94% of lenders report using AI somewhere within their collections process. But only 29% report having AI fully deployed and embedded into business processes.
Again, the picture changes when we look at company size.
Among lenders with an annual turnover of £250m+, 59% report having AI in production, compared with 21% and 23% across the two smaller cohorts.
The lender cohort reporting the smallest increase in late payments is also the cohort most likely to have AI fully deployed in collections.
The research identifies an association, not causation. It does not establish that AI adoption is responsible for the difference in late-payment performance.
The challenge isn’t simply having more cases to manage
When lenders were asked about their biggest challenges in collections, sheer volume ranked only fifth. Staffing capacity and cost came first, closely followed by regulatory compliance, staffing ability and training, and complaints management.
This suggests the pressure facing collections organisations isn’t simply about volume.
It’s about having the capacity, controls and expertise to manage every customer interaction well. And that’s where the conversation around AI becomes more interesting.
The opportunity isn’t to replace people. It’s to strengthen every interaction.
Specialist collections teams remain central to good customer outcomes.
AI can extend capacity, create greater consistency and surface insight across more customer conversations – while ensuring human expertise remains available when it matters most.
Customers can move between digital, voice and human interactions as their needs change, without losing the context of the conversation.
The future isn’t AI or human.
It’s connected, intelligent engagement that brings the two together.
TURNING INSIGHT INTO ACTION
From collections automation to intelligent engagement
Aryza Engage brings AI, automation and human expertise together across the customer journey, helping collections organisations extend capacity, support their teams and create more connected customer experiences.
Engage customers across every channel
Connect voice, digital and self-service journeys, giving customers greater choice in how and when they engage.
Extend capacity with AI Agents
Automate high-volume conversations while supporting complex collections journeys, including identity verification, payment arrangements and vulnerability detection.
Move seamlessly between AI and human support
Transfer customers to a live specialist when needed, carrying context from previous interactions and touchpoints with them.
Support specialists in the moment
Provide relevant, real-time guidance during live conversations, helping frontline teams navigate complex interactions with greater consistency and confidence.
Understand every conversation
Combine Quality Assurance and Speech Analytics to evaluate interactions at scale and identify meaning, intent, sentiment and emerging customer needs.
Build confidence before the conversation
Give teams a safe environment to practise realistic customer scenarios with AI, from hardship and payment arrangements to compliance and escalation.
SEE IT IN PRACTICE
See how Aryza Engage brings Agent Assist, Quality Assurance, Speech Analytics and AI-powered training together to support the people behind every customer conversation.
See Aryza Engage in action
TECHNOLOGY WITH A HUMAN PURPOSE
Technology should create capacity – not distance
As collections becomes more automated, maintaining the human connection becomes more important, not less.
AI can handle routine interactions, provide always-on digital engagement and surface insight across thousands of conversations. But when a customer needs specialist support, the transition to a person should feel seamless.
Aryza Engage is designed around augmentation rather than replacement, combining scalable technology with the experience, empathy and judgement of specialist collections teams.
More capacity where technology can help. More human expertise where it matters.
EXPLORE THE RESEARCH
Rising tides: Late payments in UK consumer lending
Aryza and GoCardless commissioned independent research from Opinion Matters to understand how UK consumer lenders are experiencing late payments, how collections operations are evolving and where organisations are investing for the future.
The research surveyed 250 UK-based lending professionals with responsibility across collections, loan performance, arrears, recoveries, credit risk, portfolio management, lending strategy and underwriting. 61% held C-suite roles.
Ready to rethink customer engagement? Discover how Aryza Engage can support your collections strategy.
Find out what Aryza could do for your organisation
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