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.
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Debt Collection Software Market: Strategic Insights
Market Size Value in US$ 3,177.26 million in 2021 Market Size Value by US$ 6,068.25 million in 2028 Growth rate CAGR of 9.9% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2021
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Debt Collection Software Market: Strategic Insights
| Market Size Value in | US$ 3,177.26 million in 2021 |
| Market Size Value by | US$ 6,068.25 million in 2028 |
| Growth rate | CAGR of 9.9% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
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Lucrative Regions for Debt Collection Software Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment Type, Organization Size, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
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
- Chetu Inc.
- FICO
- CSS, Inc.
- Experian Information Solutions Inc.
- EXUS
- Loxon Solutions
- FIS
- Pegasystems Inc.
- Quantrax Corporation, Inc.
- CGI Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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