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Debt Collection Software Market Overview
Increasing demand to reduce bad debt, growing need for automating debt collection process, and rising adoption of analytics in debt collection method are some of the key factors driving the growth of the global debt collection software market. Debt collection software automates the entire debt collection process, and offers accurate and up-to-date data of debtor portfolios to collectors. It continuously tracks the database for overdue invoices and money coming into those invoices. If it is found that any invoice remains unpaid for a specified amount of time, then it sends alerts to initiate the collection process.
Based on component, the debt collection software market has been bifurcated into software and service, wherein the software category held larger share in 2019. This is primarily due to the increasing adoption of debt collection software by companies, such as financial institutions and collection agencies, to reduce the number of bad debts.
On the basis of enterprise, the debt collection software market has been divided into large enterprises and small & medium enterprises (SMEs). Of these, the large enterprises category held larger market share in 2019. They are increasingly deploying debt collection software to spend less time in searching for information of bad debtors, as the software provides their real-time information by continuous monitoring of all overdue invoices. Moreover, it also allows them to automate the creation of invoices and attach portable document formats (PDFs) to emails, which help them to reduce manual invoice processing time.
Based on region, the debt collection software market has been categorized into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), and Middle East & Africa (MEA). Among these, North America generated the highest revenue in the market in 2019 and is expected to continue this trend during 2020–2030. This can be ascribed to the early adoption of new technologies, large IT spending, and presence of a large number of market players in the region. On the other hand, the APAC market is expected to witness the fastest growth during the forecast period. Rising number of financial frauds & schemes, increasing number of bad debtors, and growing investment by companies on technologies to improve debt recovery rate and manage credit risk are key factors supporting the growth of the market in the region.
Debt Collection Software Market Dynamics
Growing need to automate the debt collection process is one of the key factors supporting the growth of the debt collection software market, across the world. Debt collection has traditionally been a call-and-respond industry. It takes a significant amount of time to manually monitor all overdue invoices to find out all bad debts. Using debt collection software, companies can streamline collection processes and improve operational efficiency by ensuring greater coverage and connect rate with ease. It minimizes the time spend on unproductive tasks so that agents can dedicate more time in the collection process. As per a study done by PayStream Advisors Inc., a financial research and advisory firm, companies witness 10–20% reduction in days sales outstanding (DSO) and an average 25% reduction in past due receivables after implementing debt collection software.
Debt Collection Software Market Competitive Landscape
With the presence of a large number of players, the competition in the debt collection software market is high. In recent years, the market players take several strategic initiatives, such as mergers and acquisitions, partnerships, and product launches, in order to strengthen their market position. For instance, in November 2019, Katabat Corporation, a global supplier of debt management software solutions, launched EasyCollect, an easy to deploy, mobile payment portal for lenders and debt collection agencies. EasyCollect allows the lenders and agencies to reach borrowers through integrated emails and short message services (SMSs), as well as create a hassle-free payment experience.
Furthermore, in April 2017, Experian plc launched two debt collection solutions, namely, eResolve and PowerCurve Collections, to make debt collection process easier. eResolve solution helps consumers to negotiate and resolve past due obligations, while PowerCurve Collections can combine data, decision, and collection workflow in a single unified system.
Some of the key players operating in the global debt collection software market include Chetu Inc., Experian Information Solutions Inc., Fair Isaac Corporation (FICO), Fidelity National Information Services Inc., Nucleus Software Exports Ltd., Pegasystems Inc., Temenos AG, TransUnion LLC, Intellect Design Arena Ltd., and Loxon Solutions Zrt.
The report will also provide country-wise analysis. Some of the major countries that are covered in the report include the U.S., Canada, the U.K., Germany, France, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Mexico, Brazil, South Africa, Turkey, the U.A.E., and Saudi Arabia.
Debt Collection Software Market Size Breakdown by Segment
The debt collection software market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Component
Based on Enterprise
Based on Deployment Type
Based on End User