The Investigation and Debt Collection Industry – an Emerging and Untapped Market
The greatest frustration in the recovery of debt is the inability to locate debtors or secured property because of high cost or lack of resources.
For businesses and individuals alike, the high cost of debt recovery eats into profitability and even affects morale. Invariably, the cost is passed on to consumers through increased charges or decreased services. For many small businesses the cost of unpaid or 'bad' debt can mean the difference between viability and closure.
Those agencies providing accessible, technology-driven services with the capability for recovering debt and locating people or property on an international level will become the true industry leaders. Clients will always continue to seek affordable, efficient and cost effective services that maintain a high quality of service and only those companies capable of utilising the latest technology will move forward.
Whilst technology is bringing people together, global opportunities are seeing people move further apart. A transient population means that investigation and debt collection has entered a new era, where the successful debt collector must combine investigative skills with debt recovery skills.
Companies that are most likely to emerge as industry leaders will be those who are able to combine investigative services with debt recovery services to meet the increasing demands of clients looking to outsource their investigation and debt recovery in a changing market.
Once upon a time outsourcing services meant that clients had to weigh up the benefits of using specialists against the potential cost of reduction in efficiency associated with using an agency removed from the company’s operations. Businesses with an overriding need to have information at their fingertips often chose to keep those departments in-house, despite recognition that investigation and debt collection services are better handled by the professionals.
Advances in technology and the emergence of the Internet as a powerful e-commerce tool, as well as new communication streams, bring the possibility of real time reporting, this therefore means that this performance gap is closing. Companies wanting to succeed will ensure that they are meeting their clients’ communication and information needs.
The current needs of the investigation industry are many and innovative solutions are few. Businesses albeit unwillingly accept that a certain level of loss will be sustained as a result of theft or fraud. Similar to the effect of bad debt, this loss is passed on to consumers through increased charges or decreased services. As an example about 20% of all insurance claims are accepted as being fraudulent and there is very little that can be done about it as often the cost outweighs the benefit. Insurance companies also accept that once a claim is paid out the likelihood of recovering the lost or stolen goods is minimal.
Agencies capable of providing a cost effective solution to locating people and property will also emerge as winners in the investigation industry.
Considering the resources that society can afford to provide to them, the police and our legal system are remarkably efficient at detecting, apprehending and bringing to trial people who transgress the law. However, there are a vast number of law-breakers who wittingly or unwittingly fall into the category of being too small to worry about – too hard to locate and apprehend.
An agency that can offer practical and effective solutions to fill this gap and offer a truly international service will undoubtedly capture a large portion of the private investigation and debt collection industry worth many billions of dollars.
Businesses today are proving more receptive to utilising the services of private investigators and debt collectors and smaller business operators are expanding a previously corporate based market.
Significant opportunities exist for agencies to provide a growing range of services to the general public, a valuable resource which has been left largely untapped by commercial enterprises to date. Agencies not only need to be able to recognise the needs of the public and not only provide an appropriate level of service but also make themselves visible and accessible. Lack of awareness is the only likely factor stopping the public from appointing an investigation and debt recovery agency when the police or legal system are unable to assist them.
There exists a great opportunity for innovative agencies to develop products that effectively service what will without question be a growing public need.
Increasingly clients are seeking single service providers that can fill their needs both cost and time effectively. The days of debt recovery agencies outsourcing to investigation agencies to fill the gap in locating and recovering is coming to an end. The true winners will be those companies capable of combining investigation with debt recovery skills on an international level thereby bringing new efficiencies to both markets.
DebtPayable has been developed to provide innovative solutions and be a true leader in the debt recovery and investigative market.