Debt collection Services Market Intelligence

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Are you looking for answers on Debt collection Services category?

Are you looking for answers on Debt collection Services category?

  • What are the key trends in Debt collection Services  category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Debt collection Services  industry?
  • How is Debt collection Services industry performing?

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Report Coverage

  • Global Debt Collection Market Maturity
  • Debt Collection Industry Trends
  • Regional Market Outlook- North America, Europe, APAC,  Latin America
  • Industry Outlook

 

Market Size

Market Size North America

$17.05 Bn

Market Size Europe

$7.58 Bn

Market Size Asia Pacific

$3.3 Bn

Table of contents

  1. Debt collection Services  Executive Summary
  2. Executive Summary
  3. Global Debt Collection Industry Outlook
  1. Debt collection Services Market Analysis
  2. Debt Collection Market Maturity
  3. Debt Collection Industry Trends
  4. Growth Drivers and Constraints
  5. Regional Market Outlook
  6. Porter’s Five Forces Analysis:Developed Markets
  1. Debt collection Services Supply Analysis
  2. Supply Market Outlook: Suppliers Technology Trends and Insights
  3. Key Global Supplier Profiles
  4. Key Regional Supplier Profiles
  5. Major Global Suppliers SWOT
  1. Debt collection Services  Pricing Analysis
  2. Commission Rate Benchmarking across North America, Europe, APAC, and Latin America based on:
  3. Age of Debt
  4. Debt Portfolio
  5. Outstanding Loan
  6. Volume of Debt
  7. Stage of Debt
  1. Debt collection Services  Procurement Best Practices
  2. Sourcing Strategies and Comparative Analysis
  3. Engagement Models
  4. Contract Models
  5. Pricing Models
  6. Regulations and Other Best Practices

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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, which surpassed the country's GDP, in 2016, is expected to drive the third-party debt collection industry in North America
  • 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

debt-collection-market-market-size

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

Drivers

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

Technological advantage

  • 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

Constraints

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

Stringent regulations

  • 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

Debt collection Market Frequently Asked Questions

  1. What are some key debt collection industry statistics worth knowing?
  2. 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

 

  1. What are the primary constraints of the debt collection industry?
  2. 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.

 

  1. What’s the primary threat to the debt collection industry?
  2. 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.

 

  1. Which region holds the highest debt collection market size on a global scale?
  2. 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.

 

  1. Which are the leading debt collection industry 2020 trends that you can explore?
  2. 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.

 

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