Credit Reporting Market

Credit Reporting Market Outlook (2022 to 2032)

The global credit reporting market has reached a valuation of US$ 17.82 billion and is forecasted to move ahead at a CAGR of 4.8% to reach US$ 28.47 billion by the end of 2032.

Revenue from credit reporting services accounted for around 13% share of the global financial reporting market at the end of 2021.

Report Attributes	Details
Credit Reporting Market Size (2021A)	US$ 17 Billion
Estimated Market Value (2022E)	US$ 17.82 Billion
Forecasted Market Value (2032F)	US$ 28.47 Billion
Global Market Growth Rate (2022 to 2032)	4.8% CAGR
North America Market Share (2021)	~43%
East Asia Market Growth Rate (2022 to 2032)	~5% CAGR
United States Market Growth Rate (2022 to 2032)	~4.4% CAGR
Market Share of Top 5 Companies	~48%
Key Companies Profiled	ClearScore Technology Ltd.; Credit Technologies, Inc; Creditsafe Business Solutions Limited; CRIF High Mark.; Data Axle,; Dun & Bradstreet; Equifax, Inc.; Experian Plc; Factual Data; Fico; FIS, Inc.; Global Database Ltd; Global Payments Inc.; Intuit Inc.; Illion Data Registries Pty Ltd; Japanese Bankers Association; Moody’s Corporation; S&P Global Inc.; SCHUFA Holding AG; The Coface Group; TransUnion LLC; UNITED CREDIT BUREAU

Sales Analysis of Credit Reporting Services (2017 to 2021) Vs. Market Predictions (2022 to 2032)

Demand for credit reports has been high in the recent past from both, consumers as well as lenders. Credit reports help lenders evaluate the target customer whether to provide the lending facility and at the same time also help end customers see if the offer for credit on hand is feasible or not.

• Short Term (2022 to 2025): Due to COVID there has been an increase in demand for personal loans, credit cards, and mortgage loans. As a result, there has been a huge rise in the need for credit reports.
• Medium Term (2025 to 2028): MSMEs registration across the world will increase at a very healthy rate. Governments are helping set up new ventures and also helping in getting funds to these MSMEs.
• Long Term (2028 to 2032): Most developing nations are still not very mature in terms of credit lending. This allows borrowers to acquire funds and lenders to lend money to their target customers. This will have a long-term impact on the credit reporting market.

The global credit reporting market registered a CAGR of 3.8% between 2017 and 2021, and according to Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit expansion at 4.8% CAGR between 2022 and 2032.

Market share analysis of credit reporting based on report type and region segments. Under the report type segment, corporate credit reporting dominates with 63% market share in 2022.

Why is the Need for Credit Reporting Steadily Increasing?

“Constant Demand for Credit from Consumer End”

The credit industry is witnessing robust demand from the customer end.

• As per Federal Reserve data, from June 2021 to June 2022, consumer credit has been increasing at 8.2% on a quarterly basis.

Credit demand can be in the form of personal loans, credit cards, mortgage loans, or auto loans. There are many factors such as historical credit reports, current EMIs, and income proof, among others, which determine whether a borrower will be granted the requested loan or not. From a lender’s perspective, it is not possible to access and evaluate each borrower’s request.

To meet this high demand from customers, lenders are heavily dependent on credit reports. Credit reporting helps lenders in evaluating the risk appetite of borrowers.

“Digitalization of Credit Lending Services”

During COVID, many lenders innovated their service offerings, such as digital lending & collection, video KYC, and increased credit limits, among others. These offerings helped both enterprises as well as individual customers.

Enterprises were able to increase their credit limit against their existing line of credit. All this would not have been possible without the help of credit reports provided by credit bureau companies. On the behalf of lenders, credit report companies evaluate borrowers based on previous credit data and present the reports to lenders so that they can make sound decisions.

Due to digitalization, credit reporting services have reached almost every corner of the globe where the Internet is accessible. Now, potential borrowers can instantly check their credit reports/scores on their smartphones and choose the best available offer as per their requirements.

What Do Credit Reporting Companies Need to Keep in Mind?

“Maintain Transparency among Credit Report Models”

In recent years, we have witnessed that all major credit report companies were fined by the Consumer Financial Protection Bureau (CFPB) for wrongdoings. The CFPB has asked all credit bureaus to maintain transparency and standards for verifying the accuracy and generating credit scores/reports.

Regulatory bodies have also issued notices to stop using deceptive marketing tactics to sell credit reports. Credit bureaus are expected to provide lenders with an accurate sense of whether or not a customer is eligible to receive the loan.

• Recently, news broke that Equifax, a credit bureau, provided incorrect data to lenders, and for some customers, the credit score sent was off by almost 25 points.

“Stringent Rules Set by Regulatory Bodies”

The credit industry is one of the most heavily regulated sectors in the world. Depending on the country, there are almost 2-3 regulatory bodies that set the rules and regulations for credit reporting. In the United States, the Consumer Financial Protection Bureau (CFPB) and The Federal Trade Commission (FTC) are the two regulatory bodies that enforce related rules.

The rules and regulations set by regulatory bodies might differ from state to state. Some states have their own rules for credit reporting. Due to its dynamic nature, the rules for the credit industry keep on changing or get updating. This creates a problem for credit bureaus as they have to change their parameters for evaluation and also bring in technology enhancements to meet the new guidelines.

Country-wise Insights

Will High Credit Demand Keep the Momentum of the U.S. Credit Reporting Market?

The United States credit reporting market is currently estimated at US$ 6 billion and is expected to reach US$ 10 billion by 2032.

• As per TransUnion, one of the major credit bureaus, the credit consumer market in the U.S. continues to perform well despite the ongoing impact of COVID.

Surprisingly, the accounts that originated during the pandemic in 2020 continue to perform well as compared to the accounts that originated in previous years.

Mortgage lenders are having to find ways to grow their business as the pool of people benefiting from a refinance dwindles, and at the same time, interest rates are starting to rise. With demand still high, new consumer markets could be lucrative over the coming year.

Why is India Expected to Be a Lucrative Market for Credit Reporting Companies?

• As per the recent joint report by Experian, one of the major credit bureaus, and Invest India, the national agency for investment and facilitation, India’s credit ecosystem has been stable despite the pandemic and is projected to grow at a higher rate than most of the major countries in the world.

In the last 5 to 7 years, the Indian government has come up with many initiatives such as Jan-Dhan Yojna, Mudra Yojna, and linking Aadhar with banks, among others, which has helped the credit market grow at a higher rate. Under the Jan-Dhan Yojna, around 450 million new bank accounts were opened and included in the Indian financial system.

Rapid adoption of new financial technologies has led to the widespread acceptance of different financial products and services. The biggest beneficiary of this change is the credit market. The Indian credit reporting market is thereby expected to reach US$ 550 million by the end of 2032.

Category-wise Insights

Will Demand for Consumer Credit Reporting Increase as Expected?

Consumer credit is a vital part of any economy. The availability of credit allows an economy to function more efficiently, which, in turn, stimulates economic growth.

• As per a recent survey released by New York Federal Reserve, demand for credit in the U.S. rose this year, and applications for credit have rebounded to 2019 levels after dropping significantly during the pandemic.

The average application rate for credit was 45.6% in 2021, similar to the 2019 rate of 45.8%. Respondents who said they are likely to apply for at least one type of credit over the next year increased slightly to 29.5% for 2021 from 26.3% for 2020.

All this would not have been possible without effective and sound credit reporting bureaus.

How Will the Credit Card Market Drive the Credit Reporting Business?

Post-COVID, continuous improvements in economies across the world have led to more loan activities.

• In the latest report shared by TransUnion, a continued decline in credit card balances was noticed in 2021, as many consumers paid their debts. The number of new account creations continued to increase and reached more 'normal' levels.

For new cardholders, the wait times for approval have been relatively high as lenders are taking into account uncertainties still prevalent in the market. As per this Fact.MR study, credit lines will move closer to levels seen in recent years as issuers are ramping up their consumer acquisition efforts with new and sophisticated approaches.

The consumer credit card segment is expected to surge ahead at a CAGR of 9% between 2022 and 2032.

Competitive Landscape

Prominent credit reporting companies are ClearScore Technology Ltd., Credit Technologies, Inc, Creditsafe Business Solutions Limited, CRIF High Mark., Data Axle, Dun & Bradstreet, Equifax, Inc., Experian Plc, Factual Data, Fico, FIS, Inc., Global Database Ltd, Global Payments Inc. Illion Data Registries Pty Ltd, Intuit Inc. (Credit Karma), Japanese Bankers Association, SCHUFA Holding AG, The Coface Group, TransUnion LLC, and UNITED CREDIT BUREAU.

The global credit reporting market is highly competitive owing to top global players trying to gain market share through various strategies such as mergers and acquisitions, expansions, collaborations, and partnerships.

Also, new product offerings, as a strategic approach, are being adopted by leading companies to upscale their market presence among customers.

• In July 2022, The Central Bank of Ireland granted Experian Ireland Limited a new registration for Account Information Service Provider (AISP), which will help the company offer regulated Open Banking services across the EU/EEA market.
• In, Dec 2021, Intuit, Inc., a financial firm, acquired Credit Karma, a credit reporting company, for around US$ 8 billion.
• In March 2022, Equifax announced that it had acquired Data-Crédito, the largest credit reporting agency in the Dominican Republic. This move will help the company expand its international presence and provide more information to customers around the world.

Fact.MR has provided detailed information about the providers of credit reporting services positioned across regions, revenue growth, and product offering expansion, in the recently published report.

Segmentation of Credit Reporting Industry Survey

• By Report Type :

  • Corporate Credit Reports
  • Individual Credit Reports

• By End-use Application :

  • Commercial
    • Commercial Bank Loans
    • Trade Payment
    • Public Records (Bankruptcy, Liens, Judgment)
  • Consumer
    • Auto Loans
    • Debt Collection
    • Personal Loans
    • Credit Cards
    • Home Loans
    • Others (Mortgage Brokers, Financial Planners, Medical)

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA