Use of technology for better recovery predictions and improvement in KSA legal system act as catalysts for the KSA Debt Collection Industry: Ken Research

1. Total debt collected in KSA is expected to grow at a CAGR of 15% between the period of FY'21 and FY'26.

For more information, request a free sample: https://www.kenresearch.com/sample-report.php?Frmdetails=NTk2MDk2

The average ticket size for the industry is ~ SAR 8,000. Financing segment account for majority of debt collected, however, the non-finance segment has major share in total number of cases settled as the non-finance segment has a low ticket size. The major source of revenue for debt collection companies is the commission charged on recovered amount. Providing credit reporting services is a secondary source of revenue for the companies. Growing at a significant pace due to the rise in digital collection techniques, increase in use of customer self-service (CSS) platforms, increasing use of AI and ML for recovery predictions, training collection agents to handle complex cases, the market is expected to grow at a CAGR of 15% in the next five years.

2. Net claims incurred by insurance companies in KSA stood at ~ SAR 6 Bn in 2021, witnessing a growth rate of 20.4% in FY'21.

The net claims incurred by insurance companies in KSA witnessed a growth rate of 20.4% in 2021. Claims in motor, property/fire and accident & liability insurance are the major incurred claims that are outsourced to debt collection companies by insurance companies. Although the net claims incurred by insurance companies witnessed a dip in 2020 due to COVID-19, it grew in 2021.

3. Motor Insurance claims form ~ 95% of net claims incurred by insurance companies.

Visit A link Request for Custom Report: https://www.kenresearch.com/ask-customization.php?Frmdetails=NTk2MDk2

Motor Insurance claims contribute most of net claims incurred by insurance companies, thereby creating market opportunity for debt collection companies, followed by property/fire insurance and accident & liability insurance. Net claims in motor insurance and accident & liability insurance witnessed considerable growth in 2021 after declining in 2020 due to COVID-19.

4. NPLs as % of total gross loans for Saudi Banks is relatively higher than that of other MENA countries like Djibouti, Israel and Kuwait..

The total NPLs by Saudi Banks as % of total gross loans stood at 2.18% in 2020. Total non-performing loans by SAMA licensed Saudi banks stood at ~ SAR 31 Bn in 2021 declining by 3.3% over the previous year. NPLs by Saudi banks as % of total gross loans have witnessed steady rise over the last five years thereby creating market opportunity for debt collection companies catering to the financing segment as around 75% of debt collection is outsourced to third party collection agencies.

For more insights on market intelligence, refer to the link below: -

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/ksa-debt-collection-market-outlook-to-2026/596096-93.html

Ken Research Pvt. Ltd.,
Unit 14, Tower B3, Spaze I Tech Business Park, Sohna Road, sector 49 Gurgaon, Haryana - 122001, India

Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.

This release was published on openPR.