north america and europe debt collection software Market

The NA and EU debt collection software market size is expected to grow from US$ 2386.4 million in 2022 to US$ 4148.3 million by 2028; the debt collection software market share is estimated to grow at a CAGR of 9.7% during 2022-2028.

Emergence of big data analytics & predictive analytics and digital multi-channel communications & customer centric approaches create ample demand for debt collection software during the forecast period.

The utilization of information is a powerful tool for debt collection, and big data analytics can provide relevant details about debtors. Even seemingly basic information, such as demographics and the time a debtor answers a call, can significantly impact how a debt collection call is handled. Big data enables the collection and categorization of data with a precise focus on an individual debtor. This technology also allows for speech analysis to confirm current collections, providing the ability to listen to 100% of each call - a feat that would be impossible for humans. The data gathered from speech analytics can contribute significantly to training and operational efficiency savings. Additionally, predictive analytics, an advanced analytical technique, has been successful in debt collection. It combines various methods, including data mining, machine learning, artificial intelligence, and statistical modeling, to predict future events. This approach has been proven to increase debt collections by up to 50% for companies such as WNS, a leading utility company, which utilized predictive analytics to develop a more focused strategy for delinquency management. As a result, the advent of big data and predictive analytics is expected to drive the growth of the debt collection software market during the forecast period.

In addition, businesses nowadays interact with their customers through various digital channels like SMS, email, IVR, and WhatsApp. Therefore, financial institutions must comprehend this and devise a communication strategy for each channel to provide a consistent level of service across all communication channels. This multi-channel approach extends to the debt collection realm as well, where customers prefer to be contacted via SMS or email rather than phone or traditional mail. To cater to customers' channel preferences, the debt collection process should adopt a multi-channel approach. Furthermore, customers now expect personalized services and offers when accessing products and services. A one-size-fits-all approach is no longer suitable and can repel potential customers. Providing self-service options to customers is also crucial as 57% of individuals prefer such channels. Customer self-service options and empathy are essential while designing a customer-centric process for debt collection. Customers with defaulting loans can use their preferred channels to settle their debt problems. Therefore, the increasing trend of digital multi-channel communications and a customer-centric approach is driving the demand for debt collection software in the market during the forecast period.

The revenue of the debt collection industry in North America declined in recent years. Due to market As consolidation occurs, the number of debt collection agencies decreases. The COVID-19 pandemic has significantly impacted potential corporate growth, particularly in North America, one of the worst-hit regions. The economy lost approximately 10 million jobs, but consumers used the stimulus package to pay off their debts and save money. While stimulus packages provide people with more disposable income, this "surge" in after-tax income is expected to end soon without further cuts in stimulus spending and unemployment benefits. Consumers showed good judgment by using their stimulus checks to pay off high-yield bonds. Lenders, such as banks, mortgage owners, credit card companies, and student loan lenders, offered forgiveness and other concessions to slow payment delays. The CARES Act provided hundreds of billions of dollars in stimulus checks to Americans, increased unemployment benefits, and eased the burden of foreclosures, evictions, and student loan payments. Encore Capital, the country's largest bond buyer, made over US$ 200 million in profits in 2020, delivering 40% year-over-year earnings growth to shareholders. Despite temporary court closures, bond buyers filed thousands of lawsuits every week. The combination of government aid and the sharp decline in spending due to COVID-19 resulted in an unpredictable economy with skyrocketing unemployment but fewer delinquencies, bankruptcies, and foreclosures than usual. However, banks anticipate that the situation will soon change in their favor.

The debt collection software market is analyzed on the basis of component, deployment type, organization size, and industry vertical. The debt collection software market analysis by component, the debt collection software market is segmented into solution and service. The debt collection software market analysis by deployment type, the debt collection software market is segmented into on premise and cloud based. Based on organization size, the debt collection software market is segmented into small and medium enterprises (SMEs) and large enterprises. Based on vertical industry, the debt collection software market is bifurcated into BFSI, manufacturing, retail, IT & Telecom, and others.

The NA and EU debt collection software market size has been determined by utilizing primary and secondary research. The secondary research involved collecting qualitative and quantitative information about the NA and EU debt collection software market from both internal and external sources. This research helped to gain an understanding and forecast for all the segments in the market. To further validate the collected data and gain additional analytical insights, primary interviews were conducted with industry experts and commentators. The primary interviews included discussions with VPs, business development managers, market intelligence managers, national sales managers, and external consultants like research analysts, valuation experts, and key opinion leaders who specialize in the NA and EU debt collection software market.

A few leading players operating in the NA and EU debt collection software market are Chetu Inc.; FICO; CSS, Inc.; Experian Information Solutions Inc.; EXUSl Loxon Solutions; FIS; Pegasystems; Quantrax Corporation, Inc.; and CGI Inc.