Mexico's debt collectors adapt to Gen Z and digital lending challenges

Mexico’s debt collection industry is changing how it operates to keep up with digital lending and shifting consumer habits. The sector recovers between 40 billion and 96 billion pesos each year, handling around 80% of the country’s outsourced debt. New rules and technologies are reshaping how agencies engage with debtors—especially younger generations who prefer digital communication over traditional methods. The Association of Credit Portfolio Companies (APCOB), representing 68 member firms, oversees most of Mexico’s outsourced debt recovery. Its members follow strict guidelines: they may only contact debtors between 8:00 AM and 9:00 PM on weekdays, until 5:00 PM on Saturdays, and never on Sundays. Agencies are also banned from pursuing payments from unrelated third parties or seniors, and from violating users' rights.

Young adults, particularly Generation Z (born between 1997 and 2012), pose the biggest challenge for collectors. Many lack experience managing financial products, making them more likely to default. Their preference for digital platforms like WhatsApp over phone calls has forced agencies to adapt. The rise of digital lending has added to the problem. Looser credit checks mean more borrowers struggle to repay, increasing default risks. In response, the industry is turning to artificial intelligence, voicebots, and chatbots to improve communication. The aim is to move toward preventive, data-driven strategies that help individuals in financial difficulty find workable payment solutions.

Mexico’s debt collection sector is evolving with stricter contact rules, digital tools, and a focus on younger borrowers. By using AI and data analysis, agencies hope to recover debts more effectively while supporting those facing economic challenges. The shift reflects broader changes in lending and consumer behaviour across the country.