Debt Collection Software Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Debt Collection Software Market is segmented By Deployment Type (Cloud, On-Premises), By End User (BFSI, Healthcare, Telecom, Others), By Offering Type (Software, Services), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Debt Collection Software Market Overview

Report on Global Debt Collection Software by DataM Intelligence estimates the market to grow at a CAGR of 9.9% during the forecast period 2024-2031. Demand from  automotive and educational loans sector in North America is booming. Competitive rivalry intensifies with Sopra Banking Software, Indus Software, Totality Software and others operating in the market

Debt collection software is used to organize the daily job of the collectors and to minimize the time spent on administrative and unproductive tasks so that they can dedicate working time to high-value tasks. The growth in the industry is mainly due to increasing financial activities, credit, and loan transactions in recent years. With the assistance of debt collection software organizations help their clients to clear their debt challenges. This allows taking ultimate control over how the collection agency software works for the business to increase profits.

Debt Collection Software Market Scope

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Debt Collection Software Market Growth and Trends

Increasing consumer debts, and a rise in need to improve cash flows are driving the demand for integrated debt collection software solutions globally.

Statistics show that healthcare is the main cause of bankruptcy as people turn to credit cards to pay their medical bills. According to the Consumer Financial Protection Board (CFPB), one in three people with a credit record has been contacted by a creditor or collector. However, these calls are often random and ineffective. Traditional methods of debt collection such as aggressive calling, in-house collections, and sending additional invoices are proving to be ineffective and time-consuming.

With increasing consumer debts, the traditional method of debt collection such as robocalls is no longer viable with new laws in practice and modern customer expectations. Thus collections are increasingly adopting new trends which influence their collection practices directly or consequently.

With digitalization, debt collection can surmount organizational silos to enable improved customer experience, leveraging unified data and an Omillioni channel experience by using debt collection software.

High maintenance and implementation costs are the major restraints hindering the growth of debt collection software market.

Debt Collection Software Market Segmentation Analysis

The Debt collection software market is broadly segmented by offering type, End-user, and deployment type.

By end-user, the global market for Debt collection software is broadly segmented as BFSI, healthcare, telecom, and others. The BFSI segment is valued at USD XX million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period to reach a USD XX Million by 2026. BFSI segment is expected to grab the leading position in terms of market share in the forecasted period. Collections agencies and finance companies are also part of BFSI and playing a vital role in using debt collection software. Banking and Loan Management organizations are demanding more sophisticated and advanced processes to monitor and manage loans and collections, given the developments in the financial services sector over the past years.

By offering type, the global market for Debt collection software is broadly segmented as software and services. The Software market segment is valued at USD XX million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period to reach a USD XX million by 2026. The software segment holds XX% of market share in 2018 and is expected to increase to XX% by 2026 in Global Debt Collection Software Market. The growth in the segment is mainly due to its scalable and flexible platform.

Debt collection software has the ability to adapt to the changes within the business. It enables enterprises by gathering and managing their debts while paying off their debt. It is scalable and is flexible enough to adjust to ever-evolving processes. The ability to automate manual tasks and processes is the key driver for the debt software market. With automated debt recovery software, the data is available in real-time, accurate, and guaranteed. 

Global Debt Collection Software Market Geographical Share

The global Debt Collection Software Market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

The North America Debt Collection Software Market is valued at USD XX Million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period 2019-2026, to reach USD XX Million by 2026. North America holds the largest regional market share in global Debt Collection Software market owing to the high adoption in the region, particularly in the US, and Canada. North America is anticipated to be in the leading position throughout the forecast period, due to its early adoption of advanced technologies and cloud-based stages to grab hold of the rising bad debts rate.

North America is open to new and advanced developments, and its solid financial status empowers businesses to invest in the technologies and tools for business activities. Levels of consumer debt in the United States will continue to rise with credit card debt, automotive loans, and student loans being the major debt types. For instance, As of Nov 2018, the Federal Reserve reports that US consumer debt rose by 6.7% to USD 3.979 trillion, surpassing Oct 2018’s record of USD 3.957 trillion.

In foreseeable future, Asia-Pacific is expected to show higher development rate/CAGR over the forecast period 2019-2026 due to expanding business investments by the companies and rising requirements for effective debt management solutions. Asia Pacific businesses are more open to various methods of debt collection compared with other regions. Increasing Usage of debt collection software is the key factor for the market growth in this region. Increasing digital trends are further driving the debt collection software market in the region.

Companies focused on export in the Asia Pacific are concerned about the complexity of payment procedures, which is the main reason for the delay, as opposed to the payment behavior of their buyers. Companies are willing to buy debt collection software in the Asia Pacific to recover their money and are willing to use a number of methods to achieve results.

Debt Collection Software Market Key players

The competition in the industry is at a moderate level with the presence of various long-standing software providers as well as start-ups offering their debt collection services globally.

Some of the key market players in debt collection software are FICO, Totality Software, Seikosoft, Sopra Banking Software, My DSO Manager, Agreeya Solutions, Indus Software, CSS Impact, Pamer Systems, Advantage Software Factory, Katabat, and Debtrak.

Industry players are investing in technology to offer services to the new and maturing markets to strengthen their presence. For instance, Stampede Solution, a Debt collection Agency service provider Volare platform has received around USD 2.5 million investment from MY E.G. Capital Sdn Bhd to enter into the Philippines, Thailand, and Vietnam markets.

In October 2018, Global software provider Katabat has released Katabat Engage, which delivers data-driven debt collections powered by machine learning to consumer lenders.