Debt Collection Software Market

Global Debt Collection Software Market Size (2024 to 2029)

The global debt collection software market is predicted to reach USD 4.75 billion in 2024 and USD 7.51 billion by 2029, growing at a CAGR of 9.6% during the forecast period.

Debt collection is the procedure for monitoring debt payments from companies or individuals. A business that focuses on debt collection is called a debt collector. Debt collection software provides a flexible and secured payment option for customers. Most businesses use email, telephone, mobile consumer portals, and interactive text messages (SMS) to connect with customers. With the help of debt collection software, companies help their clients solve their debt problems.

Accounts Receivable is one of the most important areas of business. Without effective collection, it is impossible to pay for everything needed to stay in business, such as office supplies, employee salaries, or even wages. Managing accounts receivable doesn't have to be a challenge. The process becomes simple with the right tools, such as debt collection software.

Debt Collection Software provides debtors with the best in debtor information, payment utilities, workflow management, reporting tools, compliance resources, and documentation, all available in a few clicks. With the help of the cloud-based debt collection software offering, users can access information anywhere, anytime, with fully integrated applications.

Market Growth and Trends:

Debt collection software provides different features, such as customer segmentation based on collection terms, automatic reminders for consumers, emails and letters, optimized communication, personalized payments, transaction administration, commission management, management compliance, invoice management, payment, etc., to reduce human intervention and automate redundant tasks. This has led to more efficient operations and reduced the excessive cost incurred due to these processes, thus increasing the growth of the Global Debt Collection Software market.

Cloud computing technology is becoming more common. The seamless connectivity that the cloud provides makes it accessible and also increases the ease of sharing data and applications. According to Right Scale's Annual State of the Cloud Report in 2019, 91% of enterprises implemented public cloud and 72% preferred private cloud. Most companies use both options, with 69% opting for the hybrid cloud solution. Therefore, the advent of cloud technology is also driving the growth of the market.

Although government regulations regarding data security are tightening, government policies and increasing investments in BI analysis tools are developing the spend analysis market around the world. Many global companies are collaborating with national governments to improve spending and procurement processes by using expense analysis tools to provide a practical business solution.

Market Drivers and Restraints:

The global debt collection software market is showing significant demand due to the increasing automation of the deep collection process. Outsourcing debt collection to expert collection agencies is another factor driving the growth of the market. Additionally, the increasing need for self-service payment models to accelerate collections may influence market growth during the forecast period. Besides, the acceleration of digital strategies to expand collection services at a faster rate is expected to contribute to the market growth opportunity. However, enforcing debt collection regulations around the world can be challenging for business expansion.

Impact of COVID-19 on the global debt collection software market:

Several state officials and regulators have taken steps to ease the economic burden of COVID-19 for consumers in their states, including placing additional restrictions on debt collection practices. On March 26, 2020, Massachusetts Attorney General (AG) Maura Healey introduced an emergency regulation to curb debt collection in the Commonwealth nations during the coronavirus pandemic.

GLOBAL DEBT COLLECTION SOFTWARE MARKET REPORT COVERAGE:

The global debt collection software market has been categorized depending on components, end-user, organization size, and region.

Global Debt Collection Software Market - By Components:

• Software  

• Services    

 The debt collection software market can be classified into software and services. The services are segmented into consulting, implementation, training, and support. Due to improvements in consumers' borrowing and spending behavior, the risks and volume of debt are increasing worldwide. Collection organizations implement robust software to improve their collection management process and increase collection time.

Global Debt Collection Software Market - By End-user:

• Collection Agencies             

• Health       

• Telecommunications          

• Banking, Financial Services, and Insurance

 The debt collection software market is classified into collection agencies, telecommunications, health and banking, financial services, and insurance.

Global Debt Collection Software Market - By Organization Size:

• Small and Medium Enterprises       

• Large Enterprises 

In terms of the size of the organization, the worldwide market is classified into small and medium-sized companies and large companies.

Global Debt Collection Software Market - By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

Depending on the geography, the global debt collection software market can be studied in North America, Europe, Asia-Pacific, the Middle East and Africa (MEA), and South America. North America is expected to have a leading share of the worldwide debt collection software market during the outlook period due to the presence of leading players in the area. Developed countries like the United States and Japan are expected to be key markets due to the increased adoption of debt collection software.

Key Market Players:

Some of the leading companies in the global debt collection software market are Temenos, Experian Chetu, Sopra Banking, Quantrax Corporation, Indus Software, Intellect Design, Adtec Software, Advantage Software Factor, CSS Impact and Strategic Information Technology (SIT) Ltd, and others.

Recent Developments:

• In May 2020, Chetu, a leading developer of custom software solutions, was named the winner of the Silver Stevie Award in the Founding Team of the Year category at the 18th American Business Awards. Over 3,600 entries from organizations of all sizes and industries were submitted for consideration in various categories.

• In April 2020, financial technology leader FIS announced that FIS Ventures, the newly formed enterprise risk investment division of FIS, had launched an effort to invest a target of $ 150 million in fintech start-ups, promising over the next three years, which include companies based on technologies such as artificial intelligence and machine learning, digital automation and activation, data and analytics, privacy, distributed ledger technology, security, and financial inclusion.