Debt collection Services
Report on top debt collection & debt purchase suppliers across several regions -APAC, US, UK, Africa
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Debt collection Services Industry Benchmarks
The average annual savings achieved in Debt collection Services category is 6.20%
The industry average payment terms in Debt collection Services category for the current quarter is 63.8 days
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Debt collection Services Suppliers
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Debt collection Services market frequently asked questions
As per Beroe's analysis, global debt collection industry outlook is a combination of the following pointers: -- The outsourcing of debt collection to third-party agencies is higher in North America and the APAC region -- Rising household debt in Canada that surpassed the country's GDP a while back is expected to drive the third-party debt collection industry in North America -- APAC region banks have a higher tendency to outsource international debt collection activities
Two primary constraints of the debt collection industry are: -- Increasing labor costs ' Debt collection is a labor-intensive process & salaries comprise nearly 30 ' 40% of the total cost. So, any increase in the labor cost will affect the profit margins -- Stringent regulations ' The governments are planning to impose strict debt collection industry regulation policies on the debt collection industry especially for matured regions like North America and Europe which are already bound by directives & acts like FDCPA, TCPA, and CCD.
According to Beroe's report, increasing complexity of the regulatory environment across North America and Europe poses a big threat to the debt collection industry growth.
According to the report, the highest market size is captured by North America at a valuation of $17.05 Bn followed by Europe at $7.58 Bn, and the Asia Pacific at the lowest valuation of $3.3 Bn.
As per Beroe's analysis report, the following are the leading debt collection industry trends: -- There's a considerable increase in the tendency to outsource the in-house process of debt collection especially in the North American companies -- Final demand letter (an additional service for the debt collection industry) has seen a higher adoption rate among the mid-sized companies Invoicing (Transaction) verification (for checking the accuracy of debts) is expected to be lower in North America due to the higher internal efficiency of the creditors.
Debt collection Services market report transcript
Global Consumer Debt collection Services Industry Outlook
- Outsourcing of debt collection to third-party agencies is higher in North America and APAC
- Rising household debt in Canada was driving the third-party debt collection industry in North America. However, it is beginning to be contained from Q1 2020
- APAC banks have a higher tendency to outsource the international debt collection activities
- Increasing complexity of the regulatory environment across North America and Europe is acting as a threat to the growth of the debt collection industry
Global Debt Collection Market Maturity
- Outsourcing tendency of debt collection to third–party agencies is witnessed more in North America and APAC as compared to Europe
- Improvement in recovery rates by 10–12 percent has been witnessed by outsourcing of debt collection
- Cost and time for legal proceedings in Latin America is much higher than in other regions, thereby increasing the complexity of debt collection
Debt Collection Industry Trends
- Increase in the tendency to outsource in-house process of debt collection has been witnessed, especially among the North American companies
- Higher adoption of the final demand letter, an additional service for the debt collection industry, has been seen mostly among mid-sized companies
- Invoice or transaction verification, the process for checking the accuracy of the debts, is expected to be lower in North America, due to the higher internal efficiency of the creditors
Debt Collection Drivers and Constraints
Better recovery rate
- Creditors, incurring huge losses due to increase in delinquent debts, have experienced an improved recovery rate of 15 –20 percent, by outsourcing debt collections
Better utilization of time and resources
- Debt collection is an extremely complex and slow process, especially for smaller banks
- By outsourcing this process, banks have realized better cost savings, as well as resources which can be utilized for their core functions
- Better offerings of technology by the Debt Collector Agencies (DCA) such as skip tracing, text messaging, analytics, etc., has helped creditors to communicate with the debtors, thereby improving the collection rate
Increasing labor costs
- Debt collection is a labor intensive process and salaries comprise 30 – 40 percent of the total costs. Thus, the increasing labor rates, especially in the developed countries, is expected to affect the profit margins
- Governments are expected to impose stricter regulations on the debt collection industry, especially in matured regions like North America and Europe, which are already bound by directives and acts like FDCPA, TCPA, CCD