North America and Europe Debt Collection Software Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Software and Service), Deployment Type (On Premise and Cloud Based), Organization Size [Small and Medium Enterprises (SEMs) and

North America and Europe Debt Collection Software Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Software and Service), Deployment Type (On Premise and Cloud Based), Organization Size [Small and Medium Enterprises (SEMs) and Large Enterprises], and Industry Vertical (IT and Telecom, BFSI, Retail, Manufacturing, and Others)

The NA and EU debt collection software market size is expected to grow from US$ 2386.4 million in 2022 to US$ 4148.3 million by 2028; the debt collection software market share is estimated to grow at a CAGR of 9.7% during 2022–2028.

Emergence of big data analytics & predictive analytics and digital multi-channel communications & customer centric approaches create ample demand for debt collection software during the forecast period.

Information is the most powerful weapon when it comes to debt collection. Big data analytics can help to get the most relevant information about debtors. Simple information such as demographics and behavioral aspects such as the time a debtor answers a call can significantly affect how a debt collection call is handled. Big Data allows data collection and segregation with a laser-sharp focus related to a single debtor. Big data opens up possibilities such as speech analysis to confirm current collection. Voice analytics helps to hear 100% of every call. A feat that is impossible or recommended for humans. Input from speech analytics can contribute significantly to training and operational efficiency savings. Furthermore, predictive analytics, a form of advanced analytics, brings breakthroughs to collections. It combines various techniques such as data mining, machine learning, artificial intelligence, and statistical modeling to predict future events. It may sound cryptic, but it has been successful in debt collection. WNS, a leading utility company, used predictive analytics to increase its debt collections by 50%. A more focused strategy for delinquency management was developed based on the predictive analytics findings. Thus, the emergence of big data and predictive analytics will drive the debt collection software market growth during the forecast period.

Moreover, businesses communicate with their customers through multiple digital channels such as SMS, email, IVR, and WhatsApp. Financial institutions must understand this and develop a communication strategy for each channel. Customers should experience the same high level of service regardless of the communication channel. This multi-channel approach greatly extends to collection spaces where customers prefer to be contacted by SMS or email rather than by phone or letter. The debt collection process should include a multi-channel approach to reach customers according to their channel preferences. Furthermore, customers are accustomed to personalizing services and offers when accessing products and services. A one-size-fits-all approach is no longer optimal and can alienate potential customers. Additionally, it is important to offer customers self-service options. It shows that 57% of people prefer self-service channels. 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 and a customer-centric approach is driving the debt collection software demand in the debt collection software market during the forecast period.

The revenue of the debt collection industry in North America declined in recent years. Due to market consolidation, the number of debt collection agencies also continues to decline. The COVID-19 pandemic created a significant impact on potential corporate growth. North America was among the worst-hit regions by COVID-19. The economy lost about 10 million jobs, but consumers used the stimulus package to save and pay their debt. Stimulus packages are putting more money in people's pockets. However, this surge'' in after-tax'' incomes will soon end without further cuts in stimulus spending and unemployment benefits. Consumers had the common sense to pay back high-yield bonds with stimulus. Also, slowing payment delays were a high precautionary measure (forgiveness and other concessions offered by student loan lenders, banks, mortgage owners, and credit card companies). The CARES Act brought hundreds of billions of dollars in stimulus checks to Americans and increased unemployment benefits while relieving pressure on them by foreclosures, evictions, and stopping student loan payments. Encore Capital, the country's largest bond buyer, made more than US$ 200 million in profits in 2020, rewarding shareholders with 40% year-over-year earnings growth. Even though the courts were temporarily closed, bond buyers filed thousands of lawsuits weekly. The flurry of government aid, combined with the sharp decline in spending due to COVID-19, resulted in an 'unpredictable economy' where unemployment skyrocketed without the usual spate of delinquencies, bankruptcies, and foreclosures. However, banks now predict that the tide will finally be on their side in the coming months.

The debt collection software market is analyzed on the basis of component, deployment type, organization size, and industry vertical. The debt collection software market analysis by component, the debt collection software market is segmented into solution and service. The debt collection software market analysis by deployment type, the debt collection software market is segmented into on premise and cloud based. Based on organization size, the debt collection software market is segmented into small and medium enterprises (SMEs) and large enterprises. Based on vertical industry, the debt collection software market is bifurcated into BFSI, manufacturing, retail, IT & Telecom, and others.

The overall NA and EU debt collection software market size has been derived using primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the NA and EU debt collection software market. The process also serves the purpose of obtaining an overview and forecast for the NA and EU debt collection software concerning all the segments. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. This process includes industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the NA and EU debt collection software market.

A few leading players operating in the NA and EU debt collection software market are Chetu Inc.; FICO; CSS, Inc.; Experian Information Solutions Inc.; EXUSl Loxon Solutions; FIS; Pegasystems; Quantrax Corporation, Inc.; and CGI Inc.

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