Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions can have the opposite effect on the industry. This is due to households and businesses making efforts to pay down debt and boost savings, while the tightening of lending practices can result in better loans with less likelihood of default. Industry revenue is projected to display strong growth of 4.6% during 2015-16, due to more bankruptcies and increased household debt as a proportion of assets. This growth is despite a decline in the unemployment rate.
Over the past five years, high household debt levels (due to rising housing costs) fuelled steady growth for debt collection agencies... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Debt Collection industry is in the growth stage of its economic life cycle. The industry is characterised by steady demand growth, increasing technological change due to the way debt collectors assess and collect, and greater market acceptance for the industry's services. Industry value added (IVA), used to measure an industry's contribution to the overall economy, is projected to increase by an annualised 3.0% over the 10 years through 2020-21. This is higher than the projected growth in the overall economy of 2.6% annualised over the same years, reflecting steady growth in household debt as a proportion of assets, and the outsourcing of debt recovery by large and small businesses... purchase to read more