Debt Collection Software Market Size, Share and Growth Drivers 2028

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Debt Collection Software Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Component (Software and Service), Deployment Type (On-Premise and Cloud), Organization Size (Large Enterprises and SMEs), and Industry Vertical (IT & Telecom, BFSI, Retail, Manufacturing, and Others)

Publication Month: Jan 2023 | Report Code: TIPTE00002447 | No. of Pages: 212 | Category: Technology, Media and Telecommunications | Status: Published

The debt collection software market is projected to reach US$ 6,068.25 million in 2028 from US$ 3,177.26 million in 2021; it is expected to grow at a CAGR of 9.9% from 2022 to 2028.

The debt collection software represents the debt recovery program's whole data set and operational plans, including the API. The debt recovery programs may also have functionality for printing reports and analyzing debt. The debt collection software compiles all debtor profiles into a single location, including their address, credit card information, current balance, and a full report about the debt's delinquent payments, such as amount, age of debt, etc. Its primary purpose is to exchange information between creditors and DCA regarding the debtor's profile, location, contact information, extra information regarding their debts, etc. BPO is another name for this data-sharing procedure. Software and API for debt recovery can be used to collect charge-offs from both businesses and consumers.

Impact of COVID-19 Pandemic on Debt Collection Software Market Growth

 

The COVID-19 pandemic led to lockdown, restricted movement, reduced income, and a high debt load, affecting several businesses. In addition, financial imbalances and vulnerabilities such as unsustainable debt and reduced credit quality have caused damage to long-term financial stability and financial development. Moreover, there is a huge penetration of unscrupulous debt collectors, including small regional agencies that mostly specialize in field debt collection, which account for more than 80% of complaints. Also, the debt collection market players gained attention from politicians and regulators across several regions due to the influx of debts in emerging economies. The regulation also became more stringent, and state authorities focused directly on working with borrowers. The pandemic forced major market players to rework their standards and practices, shifting from applying pressure to debtors to improving their financial literacy and finding ways out of debt collection software market analysis during the crisis.

Different countries applied several targeted measures to uphold small businesses during the immediate policy responses implemented by various governments to mitigate the spread of COVID-19 and maintain the financial market. The measures were taken regarding financial aid, deferral of taxes and mandatory contributions, and requests for credit organizations to provide a grace period.

Debt Collection Software Market - Strategic Insights

Report Coverage - Debt Collection Software Market
Report CoverageDetails
Market Size Value inUS$ 3,177.26 million in 2021
Market Size Value byUS$ 6,068.25 million in 2028
Growth rateCAGR of 9.9% from 2022 to 2028
Forecast Period2022-2028
Base Year2021
No. of Pages212
No. of Tables114
No. of Charts & Figures90
Historical data availableYes
Segments coveredComponent, Deployment Type, Organization Size, and Industry Vertical
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Lucrative Regions for Debt Collection Software Market

Lucrative Regions for Debt Collection Software Market

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Market Insights – Debt Collection Software Market

The debt collection software market is broadly segmented into five major regions—North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America dominated the debt collection software market analysis owing to factors such as faster digitalization, inclination toward cloud-based services, and availability of smart debt collection software designed to fasten the debt recovery procedure across countries of North America. Also, the presence of various debt collection software providers in countries such as the US and Canada influences the debt collection software market growth in the region. The consistent adoption of advanced debt collection services across financial institutions is creating lucrative opportunities for the debt collection software market analysis in the region. However, Asia Pacific (APAC) is estimated to be the fastest-growing region in the debt collection software market. In Japan, the Government debt accounted for 225.8% of its GDP in 2022, with an all-time high of 227.2% in June 2022. As per the data released by the Bank for International Settlements for China, on December 2022, credit to the non-financial sector of China accounted for US$ 51.87 trillion, or 295% of GDP. Both economies have taken several measures such as boosting aggregate demand, lowering imports, and promoting infrastructure development. India, Australia, and South Korea are other major economies in the region that face similar issues. Such factors collectively are expected to promote the region's debt collection software market growth.

Deployment Type-Based Insights

Based on deployment type, the debt collection software market is segmented into on-premise and cloud. The cloud segment held a larger share of the debt collection software market in 2021, owing to a few factors such as higher agility, tailored scaling, reliability, cost-effectiveness, and self-service capacities. The COVID-19 pandemic led to a 72% increase in fintech app usage throughout Europe and a 50% increase in digital-first banking channels worldwide. Additionally, the debt collection software market players are taking various initiatives to grow their cloud-based deployments, further expediting the market growth. For instance, Ameyo launched a collections voice bot to fasten the loan collection calls for optimum customer coverage. Ameyo has offered public cloud environments for debt collection solutions across numerous BFSIs, such as HDFC Bank, and FE Credit. In addition, D2R Collect, a cloud-based FinTech application for debt recovery, partnered with REPAY to enhance the collection processes by offering smart digital payment capacities.

The global debt collection software market is segmented on the basis of component, deployment type, organization size, industry vertical, and geography. Based on component, the market is bifurcated into software and services. The software segment accounted for a larger share of the global debt collection software market in 2021. Based on deployment type, the market is bifurcated into on-premise and cloud. The cloud segment accounted for a larger share of the global debt collection software market. Based on organization size, the market is divided into SMEs and large enterprises. The large enterprises segment accounted for a larger share of the global debt collection software market. Based on industry vertical, the market is segmented into IT & Telecom, BFSI, retail, manufacturing, and others. The BFSI segment accounted for the largest share of the global debt collection software market. Based on geography, the global debt collection software market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Chetu Inc.; FICO; CSS, Inc.; Experian Information Solutions Inc.; EXUS; Loxon Solutions; FIS; Pegasystems; Quantrax Corporation, Inc.; and CGI Inc. are a few of the key debt collection software market players.

Debt collection software market players mainly focus on partnerships to create customer value.

  • In 2022, Chetu, a leading developer of custom software solutions, announced the latest expansion of its international offices as the company opened a new software delivery center in Noida, India. In addition, the expansion aims to accommodate the sustained growth of its global operations by opening a new software development facility at its A-206 campus in India.
  • In 2021, FICO, a leading predictive analytics & decision management software company, and Constellation Software Inc. jointly announced that they had completed the sale of FICO’s Collection and Recovery business to Constellation’s Jonas Software operating group, a leading provider of enterprise management software solutions.

Frequently Asked Questions

The global debt collection software market was estimated to be USD 3177.26 million in 2021 and is expected to grow at a CAGR of 9.9% during the forecast period 2022 - 2028.
Businesses are adopting self-service payment platforms to track customers, bill payments, and maintain authenticity. Thus, rising automation in the debt collection process is driving the demand for debt collection software. Also, the healthcare industry is expected to grow the fastest due to rising patient costs and bad debts in the healthcare industry. In addition, the expansion of medical collections software is driven by increasing demand for debt collections software and technologically enhanced systems to reduce bad debts and accelerate and automate collection cycles.
Customer self-service options and empathy are paramount when designing a customer-centric process for collection. Defaulting borrowers can use their channel of choice to settle their debt problems. Thus, the emerging trend of digital multi-channel communications & a customer-centric approach will drive the debt collection software demand in the market during the forecast period.
The key players, holding majority shares, in debt collection software market includes Chetu Inc.; FICO; CSS, Inc.; Experian Information Solutions Inc.; EXUS; Loxon Solutions; FIS; Pegasystems; Quantrax Corporation, Inc.; and CGI Inc.
Asia Pacific is the fastest-growing region in the debt collection software market. Factors such as rising omnichannel collection models, increasing need to minimize bad debt and improve cash flow and growing adoption of automation in the accounts receivable process are driving the debt collection software market in the region.
The software segment led the debt collection software market with a significant share in 2021. The software helps streamline the collection process and improve operational efficiency by ensuring broader coverage and straightforward connect rates. Intelligent debt collection software that follows debt collection industry trends can effectively generate higher Promise to Pay (PTP) rates.
The incremental growth expected to be recorded for the debt collection software market during the forecast period is US$ 2626.15 million.

The List of Companies - Debt Collection Software Market

  1. Chetu Inc.
  2. FICO
  3. CSS, Inc.
  4. Experian Information Solutions Inc.
  5. EXUS
  6. Loxon Solutions
  7. FIS
  8. Pegasystems Inc.
  9. Quantrax Corporation, Inc.
  10. CGI Inc.
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global debt collection software market.
  • Highlights key business priorities in order to assist companies to re-align their business strategies
  • The key findings and recommendations highlight crucial progressive industry trends in the global debt collection software market, thereby allowing players across the value chain to develop effective long-term strategies
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  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
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