Debt Collection Software Market Size
| Study Period | 2022 - 2029 |
| Market Size (2024) | USD 4.88 Billion |
| Market Size (2029) | USD 7.96 Billion |
| CAGR (2024 - 2029) | 10.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Debt Collection Software Market Analysis
The Debt Collection Software Market size is estimated at USD 4.88 billion in 2024, and is expected to reach USD 7.96 billion by 2029, growing at a CAGR of 10.30% during the forecast period (2024-2029).
- The growth of the market is majorly attributed to the increasing automation in the debt collection process, such as personalizing customer experience through the integration of AI and ML, Continuous innovations to meet consumer demand, predicting default probability through automation, and outsourcing debt recovery to specialized debt collection agencies.
- The most significant beneficiary of the technology-based banking method has been the digital lending market. Data-driven technology, machine learning, and other commitments are critical elements in the evolution of digital lending from traditional paperwork and formalities. Models such as P2P lending, SME financing, short-term loans, and credit cards generate a digital loan market.
- Companies can target their loans to customers due to the availability of large amounts of customer data, one of the most significant growth drivers in the digital lending sector. Further, compared to other business models in the field of fintechs, such as payments and finance services, digital lending offers greater margins.
- Digitization has become a necessity for banks in view of the growing demand for credit, increased awareness of financial matters, and an expectation that the process will go smoothly. The growth of digital lending is analyzed to create significant borrower data and other data that could be used efficiently in the debt collection software. A practical solution to automating the collection process is using debt collection software or collections CRM that allows lenders to track and follow up with debtors efficiently, predict and prioritize debt recovery, and enable faster collections. This is analyzed to boost the market’s growth rate during the forecast period.
- The management of debt collection activities has been significantly hindered by legacy systems, which can be described by out-of-date technology, restricted functionality, and inflexible architecture. These limitations have driven the debt collection software market to witness a surge in demand for modern, agile, and adaptable solutions capable of addressing the evolving complexities of debt management.
- Debt collection software has transformed due to the COVID-19 pandemic because lenders must adapt to the latest risk procedures, including new risk technology and risk-evaluation indicators. The need to unify various risk solutions by using AI technologies and enhance overall implementation processes has enhanced market growth post-pandemic.
Debt Collection Software Market Trends
Financial Institutions (Banks and NBFC) to Witness Growth
- Implementing debt collection software across financial institutions to reduce the banks' risk for loan defaulters by digitizing the collection operation through advanced technology and analytics-based debt collection software is fueling the market’s growth by supporting the development of lenders' overall revenue and profitability.
- Additionally, the trend of banking sector priorities in lowering the NPAs has led financial organizations to understand the repayment capacity of a borrower to locate areas for high and low delinquencies, driving the market of debt collection software due to their feature of delinquency management platforms to streamline and automate the collection process in the financial sector for better collection efficiencies.
- The deployment of cloud-based debt management software due to its scalability and compatibility in integrating BFSI sectors' on-premise and cloud-hosted data sheets for analyzing debt collection patterns drives the market's growth. The back-end applications in the collections function in financial institutions are increasingly using cloud technologies, advanced analytics, artificial intelligence (AI), machine learning (ML) techniques, and ready-to-consume application programming interfaces (APIs) for better reliability and accuracy in designing collection strategy for the loans, fueling the growth of the market.
- Market vendors, such as Pegasystems and Temenos AG, are introducing a comprehensive suite of debt resolution solutions, including digital collections, debt analytics, litigation management, and a collection mobile app powered by AI-driven intelligent automation and machine learning models to manage debt collections, which is fueling the adoption of the debt collection software in the BFSIs because, through complete collection solutions available in the market, users can easily implement those solutions for better recovery efficiencies.
- For instance, in June 2023, Secure Trust Bank partnered with EXUS Software to optimize the bank's collections operations through a data-driven, zero-customization approach. The bank has planned to use this single platform to reduce the complexity of business processes, streamline all communications with customers, and gain full visibility of the complete customer journey in collections processes, which is expected to fuel market growth in the BFSI sector.
- The World Bank report stated that the domestic credit to the private sector in low and medium-income countries had increased significantly and crossed their GDP in FY 2022, which showed the increase in the amount of debt in the market and raised the demand for an automated and software-based debt collection systems in the financial institutions.
Asia-Pacific is Expected to Register Significant Growth
- The debt collection landscape in China has undergone a remarkable transformation over the past few years due to new, technology-driven approaches that offer increased efficiency and compliance in debt collection. Additionally, the market's growth over the forecast period is analyzed in light of the rising bad debts and the increasing need to automate debt collection processes in end-user industries.
- The growth of the debt collection software market in China is largely driven by the increasing demand among end-user industries to minimize bad debt and automate debt collection through advanced technology-based software. As the country's financial market continues to grow and adapt, market vendors offering innovative debt collection solutions will continue to gain significant traction in ensuring efficient, compliant, and secure debt collection processes for end-user industries.
- In India, the debt collection software market has witnessed substantial growth in recent years. It is expected to continue growing due to the significant presence of global market vendors, the emergence of new debt collection software platforms, increasing bad loans, and technological advancements in debt collection practices. Challenges associated with the current economic landscape, especially in managing debt collection across various channels, lead to operational inefficiencies and rising expenses for banks and NBFCs, necessitating the adoption of debt collection software.
- The debt collection industry in India swiftly embraced technology post-pandemic, experiencing substantial momentum. The rising demand for credit, evolving consumer preferences, and the expectation of seamless experiences have compelled lenders to adopt digitization to automate debt collection practices. This expectedly boosts the adoption of debt collection software in lending organizations, aiding lenders in saving time, costs, resources, and reputation while simultaneously improving customer experience and retention rates.
- The Rest of Asia-Pacific, including Australia, Japan, South Korea, and New Zealand, is expected to register significant growth in the debt collection software market during the forecast period. This growth is attributed to increasing digitization and the need for automated debt collection in end-user industries such as banks, collection agencies, telecom, and governments. The growing imperative to minimize bad loans, coupled with the substantial presence of both regional and global market vendors, further fuels this growth.
Debt Collection Software Industry Overview
The debt collection software market exhibits a semi-consolidated landscape, with moderate penetration due to the considerable presence of suppliers in the region. These entities are progressively engaging with various digital technology startups to introduce advanced solutions. Among the notable players in this market are Fidelity National Information Services Inc. (FIS), CGI Inc., Fair, Isaac and Company (FICO) (Constellation Software Inc.), TransUnion LLC, and Pegasystems Inc.
- June 2024: Acquired.com, a forward-looking payments firm specializing in recurring commerce, and Flexys, a prominent UK collections technology provider, proudly unveiled their collaboration. Acquired.com's primary goal is equipping enterprises, such as Flexys, with cutting-edge payment tools to streamline and enhance their payment processes. Thanks to this collaboration, Flexys has seamlessly integrated a solution, elevating the payment experience for its customers.
- March 2024: Skit.ai, a prominent player in conversational AI solutions for accounts receivables, unveiled a cutting-edge suite of self-service offerings. These are designed to not only streamline debt collection but also to enrich consumer interactions. Skit.ai's latest offerings harness generative AI technology, spanning voice, chat, email, and text channels.
Debt Collection Software Market Leaders
-
Fidelity National Information Services, Inc. (FIS)
-
CGI Inc.
-
TransUnion LLC
-
Pegasystems Inc.
-
Fair, Isaac and Company (FICO) (Constellation Software Inc.)
*Disclaimer: Major Players sorted in no particular order
Debt Collection Software Market News
- March 2024: CARS24 Financial Services, an NBFC specializing in car financing and a wholly owned subsidiary of CARS24, announced a strategic partnership with Credgenics. Credgenics is a technology platform that specializes in debt collections and resolutions, operating on a Software as a Service (SaaS) model.
- March 2024: Vergent LMS, a prominent fintech lending platform, unveiled a strategic integration alliance with AvanteUSA. AvanteUSA is a top-tier service provider specializing in loan collections, catering to a broad credit spectrum ranging from sub-prime to super-prime borrowers.
- February 2024: A prominent provider of vertically integrated payment solutions unveiled a strategic partnership and technology integration with Maxyfi. Maxyfi specializes in collections and accounts receivables management software, catering to lenders, collection agencies, and law firms. This collaboration empowers Maxyfi's clientele to provide adaptable payment options that align with consumer preferences and enhance their collection procedures.
- September 2023: KEN, part of VoltonGroup of Companies, extended its ongoing partnership with EXUS and announced upgrading its debt collections technology by deploying EXUS' debt collections solution to manage on a single platform the portfolios of both companies in the energy and natural gas markets.
- September 2023: Intellect Design Arena Limited unveiled iGTB Copilot, a suite of AI solutions tailored for commercial and corporate banking. This innovative offering integrates Microsoft Azure OpenAI Service, aiming to elevate customer experiences and enhance productivity for commercial banks and their clientele.
Debt Collection Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of COVID-19 on the Debt Collection Software Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Automation in the Debt Collection Process
5.1.2 Outsourcing Debt Recovery to Specialized Debt Collection Agencies
5.2 Market Restraints
5.2.1 Inadequacy of Legacy Systems
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 Cloud-based
6.1.2 On-premise
6.2 By Organization Size
6.2.1 Large Enterprises
6.2.2 Small and Medium-sized Enterprises
6.3 By End User
6.3.1 Financial Institutions (Banks and NBFC)
6.3.2 Collection Agencies
6.3.3 Healthcare
6.3.4 Government
6.3.5 Telecom and Utilities
6.3.6 Other End Users (Real Estate and Retail)
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 Spain
6.4.2.4 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Rest of Asia-Pacific
6.4.4 Latin America
6.4.4.1 Brazil
6.4.4.2 Mexico
6.4.4.3 Colombia
6.4.4.4 Rest of Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Fidelity National Information Services Inc. (FIS)
7.1.2 CGI Inc.
7.1.3 Fair, Isaac and Company (FICO) (Constellation Software Inc.)
7.1.4 TransUnion LLC
7.1.5 Pegasystems Inc.
7.1.6 Temenos AG
7.1.7 Intellect Design Arena Limited
7.1.8 Nucleus Software Exports Limited
7.1.9 Chetu Inc.
7.1.10 AMEYO (Exotel Techcom Pvt. Ltd)
7.1.11 EXUS Ltd
7.1.12 KuhleKT Pty Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Debt Collection Software Industry Segmentation
Debt collection software, also called accounts receivable management (ARM) software, supports the needs of agencies and lenders by providing business process automation, compliance assurance, and other features essential to orderly and effective collections efforts. B2B collectors generally use debt collection software to collect commercial debts accumulated through service transactions.
The debt collection software market is segmented into deployment type, organization size, end user, and geography. By deployment type, the market is segmented into cloud-based and on-premise. By organization size, the market is segmented into large enterprises and small and medium-sized enterprises. By end user, the market is segmented into financial institutions (banks and NBFC), collection agencies, healthcare, government, telecom and utilities, and other end users. By geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The report also offers market size and forecasts for the debt collection software market in 10 countries across the major regions.
The report offers market forecasts and size in value (USD) for all the above segments.
| By Deployment | |
| Cloud-based | |
| On-premise |
| By Organization Size | |
| Large Enterprises | |
| Small and Medium-sized Enterprises |
| By End User | |
| Financial Institutions (Banks and NBFC) | |
| Collection Agencies | |
| Healthcare | |
| Government | |
| Telecom and Utilities | |
| Other End Users (Real Estate and Retail) |
| By Geography | ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| Middle East and Africa |
Debt Collection Software Market Research Faqs
How big is the Debt Collection Software Market?
The Debt Collection Software Market size is expected to reach USD 4.88 billion in 2024 and grow at a CAGR of 10.30% to reach USD 7.96 billion by 2029.
What is the current Debt Collection Software Market size?
In 2024, the Debt Collection Software Market size is expected to reach USD 4.88 billion.
Who are the key players in Debt Collection Software Market?
Fidelity National Information Services, Inc. (FIS), CGI Inc., TransUnion LLC, Pegasystems Inc. and Fair, Isaac and Company (FICO) (Constellation Software Inc.) are the major companies operating in the Debt Collection Software Market.
Which is the fastest growing region in Debt Collection Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Debt Collection Software Market?
In 2024, the North America accounts for the largest market share in Debt Collection Software Market.
What years does this Debt Collection Software Market cover, and what was the market size in 2023?
In 2023, the Debt Collection Software Market size was estimated at USD 4.38 billion. The report covers the Debt Collection Software Market historical market size for years: 2022 and 2023. The report also forecasts the Debt Collection Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the latest trends in Debt Collection Software Industry?
Key trends in the Debt Collection Software Market are a) Integration of AI and machine learning for predictive analytics b) Increased use of cloud-based solutions, and mobile app availability
How is AI transforming Debt Collection Software?
Key Transformations AI Enhances in Debt Collection Software are a) Debt collection by predicting payment delinquencies b) Personalizing communication strategies for debtors c) Optimizing collection efforts based on debtor behavior patterns
Debt Collection Software Industry Report
The debt collection software market is experiencing significant growth, driven by the increasing automation of debt collection processes and the integration of advanced technologies like AI and ML. This market segment is particularly beneficial for financial institutions and debt collection agencies, which are leveraging software solutions to enhance efficiency and customer experience. The software aids in personalizing interactions and predicting default probabilities, crucial for optimizing debt recovery strategies. The market is also witnessing a surge in demand for cloud-based solutions due to their scalability and compatibility with existing data systems, further boosting the debt collection agencies market share. Additionally, the adoption of debt collection software is becoming a necessity across various sectors, including healthcare, telecom, and utilities, to manage and streamline collection activities effectively. As the market expands, debt collection software companies are continuously innovating and offering comprehensive solutions that cater to the diverse needs of their clients, ensuring efficient management of debt recovery processes and contributing to the overall growth of the market. For detailed statistics on the debt collection software market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports, which includes a market forecast outlook and historical overview. The industry report provides a comprehensive industry analysis and market analysis, giving insights into market growth, market report, and market share. The market size and global market trends are also covered, offering an industry overview and market forecast. The report highlights market leaders and provides in-depth market research and market trends. Utilizing the latest industry information, the report provides an industry outlook and industry statistics, ensuring a thorough understanding of market data and market value. The market segmentation and market review sections offer detailed insights into different deployment types and organization sizes. The report example and research companies sections provide practical insights for industry stakeholders. Overall, the report is a valuable resource for understanding the market predictions and market outlook in the debt collection software industry.
Debt Collection Software Market Report Snapshots
