Ocwen Financial - Competitors

Ocwen Financial Competition

Now Viewing Ocwen Financial's competition in: Credit Collections and Services

Recent Developments

Small Businesses Drive Demand for Collection Agencies - Due to the economic slowdown, debt collection is a growing US business, according to Reuters. Many small businesses are turning to collection agencies for the first time, driving up demand. Large collection agency NCO Financial Systems reports a slowing of its customers' pace of collections. The Kaulkin Ginsberg consultancy cites a rise in accounts receivable at small to midsized businesses, resulting in increased outsourcing to collection agencies.

Consumer Ability to Carry Debt Declines - Consumer ability to afford debt has declined from a year ago, as personal income and spending capability grow slower. US personal income increased a slower 4.4 percent in April 2008 from year-earlier levels. Disposable personal income rose only 1.8 percent compared to a year earlier when, on average, consumers had more money to spend.

Employment Growth Differs at Collection, Credit Firms - The widening credit crisis and rise in foreclosures have led to workforce expansion at collection firms and downsizing at credit bureaus. US employment at collection agencies increased 5.8 percent in April 2008 from year-earlier levels, but decreased 16 percent at credit bureaus.

Competitive Landscape

Demand for credit reporting and for collections services are driven by the volume of financial transactions, and by the health of the economy. The profitability of individual companies depends largely on efficiency of operations. The profitability of collections companies that buy receivables portfolios depends on their ability to assess recovery potential. Large credit reporting companies have significant economies of scale in operations. Small companies can compete successfully in the collections segment because of the labor-intensive nature of the work.

Full Industry Overview For Credit Collections and Services

Credit Collections and Services Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US credit agencies other than banks, which includes credit collections and services, is forecast to grow at an annual compounded rate of 5.7 percent between 2007 and 2012.

Credit Agencies Growth Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.