The Debt Collection Software Market represents the debt recovery program’s whole data set and operational plans, including the API. The debt recovery programs may also have functionality for printing reports and analysing debt. The debt collection software compiles all debtor profiles into a single location, including their address, credit card information, current balance, and a full report about the debt’s delinquent payments, including the amount and age of the debt. Its primary purpose is to exchange information between creditors and DCA regarding the debtor’s profile, location, contact information, extra information regarding their debts, etc. BPO is another name for this data-sharing procedure. Software and API for debt recovery can be used to collect charge-offs from both businesses and consumers.
CHETU INC.; FICO; CSS, INC.; EXPERIAN INFORMATION SOLUTIONS INC.; EXUS; AND LOXON SOLUTIONS ARE AMONG THE KEY MARKET PLAYERS OPERATING IN THE DEBT COLLECTION SOFTWARE MARKET.
The COVID-19 pandemic increased patient costs and bad debts in the healthcare sector, driving the demand for debt collection software. Debt collection software sales are expected to increase during the forecast period as the adoption of debt collection software to address internal medical debt collection by major healthcare organizations will become significant, driving the growth of the debt collection software market. The COVID-19 outbreak introduced new obstacles to debt collection. Several state agencies and regulators took the following steps to ease financial restrictions imposed on consumers within their jurisdictions due to the pandemic. Due to this factor, developers of debt collection software experienced a temporary setback that also affected debt collection software sales. Debt collectors and creditors are prohibited under this law from attacking citizens. Deviations in enforcement and dunning procedures during COVID-19 and severe economic impacts, such as an increase in the unemployment rate, have impeded the growth of the debt collection software market.
The debt collection software market is segmented into five major regions – North America, Europe, Asia Pacific, the Middle East & Africa, and South America. North America dominated the market for debt collection software owing to factors such as faster digitalization, growing inclination towards cloud-based services, and availability of smart debt collection software designed to fasten the debt recovery procedure across countries of North America. Also, the presence of various debt collection software providers, such in countries such as the US and Canada is influencing the demand for debt collection software in the region. Over time, the consistent adoption of advanced debt collection services across financial institutions is shooting lucrative opportunities for demand for debt collection software in the region. In addition, rising debt across countries of North America is propelling the demand for debt collection software.
The debt collection software market in the Asia Pacific is expected to grow tremendously during the forecast period. Debt collection software providers are investing significantly to set up their infrastructure and focusing on banks, FinTech, Micro Finance Companies (MFCs), and digital lending firms—providing digital-first and analytics-based approaches for debt collections. Businesses in Asia Pacific are more open to various debt collection methods than other regions, as massive export trading is conducted, and dealers are concerned about the complexity of payment procedures and debt collections. Therefore, companies are willing to buy debt collection software to recover their amount. Furthermore, there is an increasing trend toward home and business loans, and debt collectors in the region have been increasingly formulating the adoption of debt collection software. However, diversified debt collection policies across the region and high maintenance costs related to debt collection services are likely to hinder the debt collection software market growth.
The top ten companies in the market include Chetu Inc.; FICO; CSS, Inc.; Experian Information Solutions Inc.; EXUS; Loxon Solutions; FIS; Pegasystems; Quantrax Corporation, Inc.; and CGI Inc. The above listing of key players is derived by considering factors such as overall revenue, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. The industry’s important market initiatives and product developments are mentioned below. A few of the important market initiatives and product developments from the industry are mentioned below:
| Year | News |
| 2022 | CGI announced a new product CGI Credit Studio, a platform that centralizes shared foundational services across the entire credit lifecycle, from originations to servicing to collections and recovery. CGI Credit Studio is developed to accelerate time-to-value with fast, low-cost, low-risk deployments and supports lenders’ digital initiatives to become more agile, flexible, and customer-focused. |
| 2021 | Ontario Systems, a leading provider of enterprise workflow automation software, acquired Katabat—a leading cloud-based collection platform providing cutting-edge debt resolution solutions for lenders and borrowers. In addition, Ontario has officially expanded its substantial collections workflow footprint into the US$ 2.5 billion first-party collections market segment. |
| 2021 | Chetu, a global software development and support leader, has announced a multi-continental expansion of its offices, including new locations in the United States and the United Kingdom. |
