The global credit collection and collection agency services market was valued at more than USD33 billion in 2016 and is expected to around $USD67 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on credit collection and collection agency services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global credit collection and collection agency services market during the forecast period. Some of the top vendors listed in this industry analysis include Capita Asset Services, Teleperformance, Convergys, Alorica, Atento, Transworld Systems, Arvato, Lowell Group, Moorcroft Debt Recovery, and Wescot Credit Services.
The use of mobile technologies ensures effective implementation of collection practices. The increasing the number of debtors defaulting on payments has led to growth in the use of mobile devices and advanced internet technologies by collection agencies, as it helps them gain access to information regarding delinquent customers across the world on the go.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “The use of strategic predictive analytics helps prioritize delinquent accounts and enhance collection strategies. This method considers the probability of recovery and the expected amount that can be recovered that supports improving collections related decision making. The und-users are incorporating behavior profiles of borrowers into decision-making models who help them determine specific treatment.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Outsourcing of accounts receivable
The outsourcing of debt collection services enhances the business efficiency of creditors by ensuring maximization of AR collection. The collection agencies consistently offer high-quality and reliable debt collection services that help creditors organize and maintain their revenue-generation streams. The outsourcing of these services also helps creditors minimize overheads associated with the maintenance of in-house collection teams and focus on core competencies.
Lenient approach of lending companies
The lenient approach by the lending companies helps in the growth of credit collection agencies. This growth helps these agencies to ensure effective payment of loans through FDCPA, thereby preventing customers from defaulting on loans. For instance, banks and other lenders sell charged-off debt to debt buyers that use litigation to collect outstanding amounts or outsource it to collection agencies and law firms to file suits and collect on their behalf.
High efficiency of collection agencies
The growth in the debt market is prompting collection agencies to hire well-trained staff to effectively deal with debtors, collect outstanding payments, and follow up till the debt is completely recovered. These agencies have systems and processes that can enable quick resolution of debt-related issues and speed up recovery of outstanding payments. The strategies employed by these agencies helps creditors reduce the burden of bad debts, enhance cash flows, and explore non-traditional methods of lending leading to the growth of the market.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Credit Collection and Collection Agency Services Market – Procurement Market Intelligence Report 2017-2021.’
