Consumer Market Segments: Authoritative Reports For Busy Executives

The U.S. accounts receivable management (ARM) industry is comprised of numerous credit-granting market sectors. Each of these sectors has its own specific nuances associated with it; some are expanding faster than others, while some face increased regulatory scrutiny. Additionally, some sectors maintain clients that are ideally suited for first-party, debt buying, or legal collections.

At Kaulkin Ginsberg, our experienced market research team has prepared authoritative, sector-level reports on eight consumer market segments which are now available for busy ARM executives and business development teams tasked with determining whether to expand, enter, contract, or exit entirely from a specific market segment.

Which market sectors are currently available?

Kaulkin Ginsberg currently has detailed sector reports that cover the following credit grantor markets: Cable & Telecommunications, Commercial Banking, Credit Unions, Federal Government, Healthcare, Property Management, Student Loans, and Utilities. We also have extensive industry-level reports available on the ARM, revenue cycle management (RCM), and customer relationship management (CRM) industries available for purchase.

In the cable & telecommunications space, individual accounts are often relatively small, meaning that collectors and debt buyers alike must rely on maintaining a high volume of accounts to service or purchase. Sector revolutionaries, like Netflix, Inc., may present significant issues for this market in the future, as incumbents may have to adopt Netflix’s model – as we have seen with Hulu and Amazon Prime – or risk losing market share derived from shifting consumer preferences. Prominent clients include Verizon Communications, Inc., Comcast Corp., and Charter Communications, Inc.

Banks, credit unions, and other lending institutions hire third-party collectors to recover charged-off credit card, auto, and other consumer and commercial debts. Financial service providers may also sell portfolios of defaulted accounts to debt buyers or hire ARM companies to provide first-party or legal collection support. Major clients in this sector include Bank of America Corp., Capital One Financial Corp., JPMorgan Chase & Co., and Navy Federal Credit Union.

Federal Government agencies, such as the Department of Health and Human Services (HHS) and the Export-Import Bank (EXIM), can enter into contract with ARM companies for debt servicing and the provision of other back-end services. These debts can range from Medicare overpayments, to overdue taxes, to defaulted farm loans. The Federal Government presents massive opportunities for the ARM industry; however, debt collection specialists may face registration processes and due diligence steps that are vastly different from contracting to provide these services in the private sector.

Hospitals, independent physicians, and other clinical servicers often outsource the recovery of outstanding medical debt to ARM firms as part of their overall collection efforts. Healthcare providers may also choose to outsource other back-end processes – such as patient scheduling, case management, and billing. Firms offering these services, in addition to outsourced collections, generally fall under the purview of RCM, rather than ARM, though the line between the two has blurred. Prominent clients in this sector include HCA Healthcare, Inc., Ascension Health, Inc., and Tenet Healthcare Corp.

In the property management sector, ARM firms collect past-due rent payments from tenants. The property management market itself is broadly comprised of establishments that primarily engage in acting as lessors of residential (e.g., apartment building) and non-residential buildings (e.g., arenas or professional offices), and those managing real property for others (e.g., rent collection and overseeing maintenance, security, or trash). Prominent clients include CBRE Group, Inc., Equity Residential, LP, and AvalonBay Communities, Inc.

Student lenders – including the Department of Education (ED) and private lenders (e.g., Navient Corp. or Citizens Financial Group, Inc.) – frequently utilize ARM firms to service defaulted accounts. Collections in this sector can be particularly lucrative, especially for ARM firms that contract with ED and the larger guaranty agencies, due to the considerable volume per loan and delinquency rates.

Utilities providers outsource to the ARM industry to recover overdue bills. Like in the cable and telecommunications space, utilities accounts receivables are often much smaller than what one would find in the financial services or student loan sectors because providers would commonly discontinue delinquent customers’ usage rather than allow them to accumulate large debts. Major clients in this sector include the American Electric Power Company, Inc., Exelon Corp., and American Water Works Company, Inc.

What type of information is included in the sector-in focus reports?

Each report provides an extensive amount of information about the sector including, where necessary but not limited to, the following:

  1. A detailed overview of the market sector in focus
  2. Current trends and developments within the sector
  3. Regulatory and compliance review
  4. Economic drivers and indicators
  5. Case studies on major clients within each sector

How much are these reports?

Individual sector-in-focus reports are now available for ARM executives to purchase at:

  • 1 report: $395
  • 3 reports: $1,000
  • 8 reports: $2,000

These reports are available upon request, free of any charge, to current clients of Kaulkin Ginsberg. A Kaulkin Ginsberg advisor will also be available to confidentially discuss your particular needs. To purchase a report or schedule a call, please contact us at hq@kaulkin.com.

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