UK Debt Collection/Advisory Market

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Debt Collection - Software: United Kingdom

Debtrak, EXUS, and Draycir are three debt collection software used in the United Kingdom. Draycir has over 85,000 users and has the highest documented annual revenue of $17.9 million.

Debtrak

  • Debtrak is a leading debt collection software in the UK. The company has a successful track record of integrating with third-party systems, and it provides services for the government, agency, utilities, banks and financial institutions.
  • The company is headquartered in London, UK.
  • Debtrak has an estimated annual revenue of $8.6 million.
  • Some of its clients include CCI Credit Management UK, Australian Receivables Limited, Austral Mercantile, Mercury Collections, Receivables Management Limited, NCO Europe.
  • The company has an estimated market share of 0.33% in the UK debt collection market.

EXUS Financial Suite

  • EXUS Financial Suite (EFS) is recognized as one of the best debt collection and recovery software in the world. EXUS creates innovative solutions to cater to every business needs and help people to perform better.
  • The company is headquartered in London, UK.
  • EXUS has an estimated annual revenue of $5.3 million.
  • Some companies using the software are Watt + Volt, SCB, and Southeast Europe bank.
  • The company has an estimated market share of 0.22%.

Draycir

  • Draycir provides document management and credit control software that helps businesses to reduce bad debt, cut costs and improve cash flow. The company's award-winning products are used by small and medium-sized firms in various sectors.
  • The company is headquartered in Leicester, UK.
  • Draycir has an estimated annual revenue of $17.9 million and 85,000 users.
  • Some of Draycir clients are AM2PM Group Holdings Limited, Swanstaff Recruitment, 707 Resource Management, and Instant.
  • The company has an estimated market share of 0.69% in the UK debt collection market.

Research Strategy

The three companies profiled are noted among the best debt collection software, according to market reports and software reviews. To determine the market share of the software, we triangulated the information using the UK debt collection market size according to IBIS World.


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Insights and Trends - Debt Collection: United Kingdom

Two trends in the UK's debt collection market are the industry's growth into less traditional sectors and a new wave of market consolidation.

Growth into Less Traditional Sectors

  • The expansion of the UK debt collection market into less traditional sectors was selected as a key trend in the industry given the preponderance of market researchers (e.g., ResearchAndMarkets, Apex Insight) and debt industry organizations (National Debtline) currently discussing this shift.
  • Although, historically, the UK debt collection industry has been most active in the financial sector, these services are increasingly expanding into non-traditional industries such as telecommunications, utilities and the public sector.
  • This shift is being driven by the fact that debt levels in the UK have skyrocketed with the increase in local consumer borrowing over the past 15 years, driving "significant consumer debts" in these alternative sectors.
  • The UK's leading debt advice charity National Debtline recently commented in its report, A Decade in Debt, that rising consumer debt levels in the UK and associated services in these industries is "unsurprising" amid the new ubiquity of mobile and smartphones, ongoing "fuel poverty" challenges in the country and a relatively recent "peak in unaffordability" for services such as water.
  • Similarly, European financial services expert and researcher Apex Insight asserted in its 2018 and 2019 Market Insights reports that debt collection services are "increasingly being used" in new areas such as council tax and telecoms.

Market Consolidation

  • A second major trend in the debt collection industry is the further consolidation of key market players.
  • This trend was identified as a continued and evolving theme for the industry based on the expertise of several credible researchers (e.g., Apex Insight, Orbis).
  • Notably, the UK debt collection market experienced significant prior consolidation in 2015, when the "largest debt players" merged and many other industry subject matter experts were acquired by European conglomerates.
  • Since then, the industry's more frequent but smaller deals have been supplanted by less common but much larger acquisitions.
  • Going forward, industry experts assert that the largest debt collection agencies in the UK will pivot towards the acquisition of large regional agencies.
  • This shift is being driven by a desire to expand their geographic footprint, achieve new economies of scale and more generally improve collection rates.
  • For example, industry Apex Insight asserted in its 2018 and 2019 Market Insights reports that additional market consolidation is highly probable, given the potential synergies available to major players who extend the use of their more "sophisticated collection systems and teams" into rival companies.
  • Additionally, Orbis Partner and Debt Sector expert Gary Ecob has suggested that the recent deals involving Marston Holdings, Cabot Credit, Westcot Credit and NSLs indicate that the debt collection market is "entering into a new consolidation phase."
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