According to a recent report published by Allied Market Research, titled, "Debt Collection Software Market by Component, Deployment, Organization Size, and End User: Opportunity Analysis and Industry Forecast, 2019-2026," the debt collection software market size was valued at $2,783.2 million in 2018, and is projected to reach $5,660.8 million by 2026, growing at a CAGR of 9.4% from 2019 to 2026.
Debt collection software is a management software responsible to streamline debt collection and recovery processes. This software is capable to analyze large datasets, increase the level of automation, and meet the demand of an ever-changing debt collection industry. Some of the features of the debt collection software include payment plans, client management, in-house collections, transaction management, and others. Advent of digitalization has augmented the need to automate the debt collection processes. This is a major factor expected to drive growth of the global debt collection software market at a significant rate. Usually companies prefer to outsource or hire debt collectors, which is a cost-effective process. In addition, this helps companies to continue their spending on their own resources tracking payment on delinquent accounts. This is anticipated fueled the growth of the collection software market at a significant rate in the coming years.
Among the component segment, the software segment exhibited the highest revenue contributor in the global market in 2018, owing to its features such as automated invoicing options, central data storage, alerts & notifications, and others. However, the service segment is expected to exhibit the highest growth rate during the forecast period.
North America dominated the overall debt collection software market in 2018, and is expected to remain dominant during the forecast period, due to availability of well-developed infrastructure which strong compatibility capabilities. Thus, the integration among various BFSI systems becomes easy. However, Asia-Pacific is expected to exhibit highest growth rate during the forecast period, due to digital transformation and increase in willingness of consumers to adopt new technologies.
Based on deployment, the on-premise segment dominated the overall debt collection software market in 2018, and is expected to continue this trend during the forecast period. This is attributed to increase in need to secure critical data from cyber-threats and monitor the invasion of data within the organization. These factors promote users to implement on-premises-based debt collection software. Furthermore, high demand for debt collection software among the debt collection agencies is proliferating the growth of financial institutions segment at a significant rate. In addition, the rise in need to reduce bad debt in financial institution the debt collection software is expected to help these institutes to analyze the debtors behavioral and banking data. This in turn is expected to drive the growth of the financial institution segment during the forecast period.
According to Makarand Sinnarkar, Research Analyst, ICT at Allied Market Research, “North America dominated the debt collection software market in 2018, and is projected to remain dominant during the forecast period. This is attributed to availability of well-developed infrastructure, which enables market players to adopt emerging technology with ease. Moreover, upsurge in number of early adopters of technologies in the BFSI sector coupled with presence of number of major players operating in this region is the key factors that contribute toward the growth of the global market.”
Key Finding of The Debt Collection Software Market:
- By component, the software segment dominated the debt collection software market share. However, the services segment is expected to exhibit significant growth during the forecast period in the debt collection software industry.
- On the basis of deployment, the on-premise segment is anticipated highest revenue share in 2018.
- Depending on organization size, the small & medium enterprises segment accounted for the highest revenue in debt collection software market forecast.
- As per end user, the financial institutions generated the highest revenue in 2018. However, the healthcare sector is expected to witness considerable growth in the near future.
- Region wise, Asia-Pacific is expected to witness significant growth in terms of CAGR in the upcoming years.
Some of the key players profiled in the debt collection software market analysis include Atradius Collections, Chetu Inc., Experian Information Solutions, Inc., Fair Isaac Corporation, Fidelity National Information Services, Inc., Nucleus Software Exports Ltd., Pegasystems Inc., Temenos AG, Tieto, and TransUnion LLC.
Major players operating in this market have witnessed high growth in demand for debt collection solutions especially due to digitalization. This study includes debt collection software market opportunity, analysis, trends, and future estimations to determine the imminent investment pockets.