Global Debt Collection Services Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Debt Collection Services Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

The process of collecting debts owed by a person or business is called debt collection. A debt collection agency or debt collection agency is a company that specializes in the process of collecting debts owed by individuals or businesses. Most debt collection agencies act as agents for creditors who hire them to collect debts on their behalf in exchange for a fee or a percentage of the total amount owed. Debt collection software is also considered collection software. It is a digital tool that tracks debtors, ensures follow-up and predicts debt collection priorities.

Often, the entire process of debt management can be covered by a suite of software that, when used in conjunction with ERP and loan management systems, can cover all aspects of the process. The software includes features such as customer segmentation based on collection scenarios, customer reminders, automation of emails and notifications, simplified communication with customers, appropriate payment scheduling, performance management, commission management, agreements, invoicing and payments. Commission management. All these functions can be found in the software. Debt collection software can be installed on a company's server or in the cloud, depending on the organization's preferences and needs.

Market Overview:

The latest research study on the global Debt Collection Services market finds that the global Debt Collection Services market reached a value of USD 29806.93 million in 2022. It’s expected that the market will achieve USD 36619.09 million by 2028, exhibiting a CAGR of 3.49% during the forecast period.

The debt collection services market has been relatively well insulated from the crisis in Ukraine. Few companies had direct or indirect contact with Russia or Ukraine. Where exposures exist, these are not typically large, and few European leveraged loan borrowers have a presence in the region beyond operational outposts. The one third of the credits covered that do have some sort of trading relationship with counterparties in Ukraine or Russia are not material: such operations typically accounting for less than 2 per cent of group revenues or purchases. Even those firms with small operations in Russia note that they have little by way of cash balances in the country.

The growing inclination of organizations towards effective debt collection is fuelling the growth of the debt collection services market. The financial organizations are redesigning their debt collection journeys to reduce the timeframe of the money collection process, which saves approximately 30.0% of costs associated with the process. Debt collection services assists in the automatic and daily monitoring of users' accounts as well as provide notifications and alerts regarding loan installations. This helps financial organizations to give time-to-time updates and warnings regarding Equated Monthly Installments (EMI) of the loans. Additionally, debt collection services help financial organizations to stay compliant with consumer protection laws by identifying bankruptcy status and litigious consumers.

Governments are expected to impose stricter regulations on the debt collection industry, especially in matured regions like North America and Europe, which are already bound by directives and acts like FDCPA, TCPA, CCD. Across the globe, every country has its own set of rules and regulations for the recovery of debt. Some examples of such rules are the 'Fair Debt Collection Practices Act (FDCPA') in the U.S. and 'Recovery of Debts & Bankruptcy Act' in India. These rules provide some rights to debtors in case of default. In the whole process of debt collection/recovery, a debt collection company has to follow certain rules while approaching defaulters. As per FDCPA, a debt collection agent cannot call the debtors after a certain time of the day or at night. A recovery agent can only call 7 times within 7 days. Debt collection companies face challenges when contacting debtors as they have to follow rules set out by the government. These factors increase the time spent on each case, which results in increased operational costs, ultimately leading to lower profit margins.

Region Overview:

In 2021, the share of the Debt Collection Services market in North America stood at 37.34%

Company Overview:

Encore Capital
Encore Capital Group is a global specialty financial firm with operations and investments in North America, Europe, Asia and Latin America. Through its subsidiaries around the world, Encore buys or services portfolios of accounts receivable from major banks, credit unions and utility providers. Customer service and compliance are at the core of the business and are enforced through the collections strategy.

Experian

Experian is an American-Irish multinational data analytics and consumer credit reporting company. Experian collects and aggregates information on more than 1 billion people and businesses, including 235 million U.S. individual consumers and more than 25 million U.S. businesses. In addition to credit servicing, Experian also sells decision analysis and marketing assistance to businesses, including personal fingerprinting and targeting. Its consumer services include online access to credit history and products designed to prevent fraud and identity theft.

Encore Capital is one of the major players in the debt collection services market, holding a 4.20% share in 2022.

Segmentation Overview:

By type, Early Out Debt segment accounted for the largest share of market in 2021.

Application Overview:

The market's largest segment by application is the segment Healthcare, with a market share of 23.85% in 2021.

Key Companies in the global Debt Collection Services market covered in Chapter 3:

UNIVERSUM Group
Atradius Collections
Indigo Cloud
Transunion
Prestige Services Inc (PSI)
JST CollectMax
CollectPlus (ICCO)
Comtech Systems
Cogent (AgreeYa)
Adtec Software
FIS
Kuhlekt
coeo Inkasso GmbH
Lariat Software
CGI
Comtronic Systems
Experian
Pamar Systems
Codix
Codewell Software
InterProse
Decca Software
TrioSoft
Case Master
Asta Funding
CollectOne (CDS Software)
Katabat
Weltman, Weinberg & Reis
Quantrax Corp

In Chapter 4 and Chapter 14.2, on the basis of types, the Debt Collection Services market from 2018 to 2029 is primarily split into:

Early Out Debt
Bad Debt

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Debt Collection Services market from 2018 to 2029 covers:

Healthcare
Financial Services
Government
Retail
Telecom & Utility

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)