Collection Software Market Put at $700 million by 2010
August 09 2006
Software spending for consumer collection will grow to $700 million by 2010 compared with $500 million this year, according to a new report from PayStream Advisors, a Charlotte, N.C. research and consulting firm.
Many collection agencies are using software bought before 2000, notes David Schmidt, a PayStream senior consultant. “It’s old software systems at this stage. Eventually people will have to upgrade.”
Major software makers in the collection area have been introducing new products that provide opportunities for improved productivity. Vendors also are expanding the range of products they offer the business, Schmidt notes. Credit bureaus, for example, are moving beyond scoring to predictive tools that can tell credit card issuers and other lenders which accounts are likely to become delinquent. “All the vendors seem to be wanting to expand their footprint, to add additional functionality,” he says.
Another major software trend is automated recovery products that can be used as an alternative to offshoring collection work, Schmidt notes.
“The leading-edge solutions that are coming out provide a tremendous opportunity for the consumer collection industry to improve their productivity and ultimately decrease their costs as well,” Schmidt says.