Year End Offer

How a Newly Established Debt Collection Company in KSA was able to drive digital adoption roadmap

Background and Challenge
Client’s Background:
  • A debt collection company, which has been established as a subsidiary of a leading $11 billion conglomerate in KSA with operations across 8 core business sectors and having presence in over 30 countries. The debt collection company (the client) is a new market entrant and has been established with the vision of becoming the most preferred partner for debt collection services in KSA.
Requirements of the Client:
  • Understand the market attractiveness across different segments of the market: The debt collection market can be divided into three segments basis the nature of clientele – (i) insurance, (ii) finance and (iii) non-finance. The client entered the market as a third party debt collector for few insurance segment companies. However, they were interested in foraying into non-finance and finance segment as well. Hence, they commissioned Ken Research to carry out a market study to understand the potential of debt collection business in KSA and analyze opportunities, advantages and disadvantages as well as identify potential clients across different segments of the market.
  • Understand how the company can undergo digitalization to improve service delivery: The industry witnessed the increasing application of technology in debt collection. Hence, the client requested Ken Research to analyze the latest digital trends shaping the industry, features of debt collection software used in the industry and finally provide a digital framework that can be adopted by them for improving service delivery and improving customer satisfaction.
KSA Debt Collection Industry at Glance:
  • KSA Debt Collection industry stands at SAR 2.8 billion and is poised to achieve a growth rate of >10% in the next five years
  • Rise in digital collection techniques along with the use of AI and ML for recovery predictions
  • Highly regulated by SAMA, which is a major challenge for any new market entrant
  • Highly competitive industry with players having nation-wide presence, along with competitive pricing and without much service differentiation

Approach and Recommendations
Inception: Creating ecosystem and identifying stakeholders
  • Kick-off call for detailed discussion on scope of work
  • Creating Supply-side as well as Demand-side of Ecosystem
  • Creating initial level hypothesis about the industry
  • Identifying experts from the ecosystem for primary research
Execution: Market Sizing, Segmentation, Competitive Landscape, Forecasting
  • Extensive desk research on major debt collection companies of KSA as well as on the industry.
  • Public and proprietary databases referred as well as Industry Articles, Analyst Coverage, Annual Reports of companies reviewed.
  • Primary Research and Mystery Shopping conducted with Operations Manager, Debt Collection Agents, Accounts Head and C-Level Executives of existing debt collection companies.
  • Through the secondary and primary research, detailed analysis conducted on the segment-wise value chain as well as industry analysis covering latest trends and developments, regulatory landscape of the industry and challenges for new entrants.
  • Market size estimated using bottom-up approach and detailed picture on market segmentation prepared using inputs gathered through secondary and primary sources.
  • Detailed competitive landscape of the industry prepared on the basis of operational and financial parameters of existing players
  • Market share of major players estimated based on the amount of debt collected
Closure: Identifying opportunities & providing recommendations
  • Identifying segment-wise potential (finance and non-finance) of debt collection business in KSA
  • Providing detailed case study on best practices adopted by top players in the market
  • Identifying client-wise opportunity in the non-finance segment
  • Analyzing and recommending how the client can leverage the network of its parent company to foray into the new segments of the market, along with presenting the merits and roadblocks for entry
  • Providing a digital framework that can be adopted by the client for improving service delivery
  • Preparing and submitting the report to the client followed by presenting it to their management
Result and Conclusion – Client is  able to successfully create digital roadmap for Debt, Finance and Non-Debt Collection services in KSA
Understanding of Segment-wise Value Chain
  • The study conducted by Ken Research will help the client in understanding various parameters of the value chain viz., age of debt, success rate, commission charged, average ticket size, settlement duration, major challenges, etc. and how these parameters differ across segments
Understanding of Market Attractiveness across Segments
  • Ken Research provided the client with the existing opportunity as well as the future growth potential of non-finance and finance segment. This will help the client in strategizing their business expansion plans into other segments.
Expand Clientele
  • Ken Research aided the client in identifying company-wise opportunity in the non-finance segment. This will help the client in targeting the right set of companies as they foray into a new market segment.
Figure 1: Mapping recommendations across short term and long term
Contact Us

Write to us on support[@] for more details

Get this for your business