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I AgreeAnalysis of Credit Reporting market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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 (2022-2032) |
4.8% CAGR |
North America Market Share (2021) |
~43% |
East Asia Market Growth Rate (2022-2032) |
~5% CAGR |
United States Market Growth Rate (2022-2032) |
~4.4% CAGR |
Market Share of Top 5 Companies |
~48% |
Key Companies Profiled |
|
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
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.
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.
“Constant Demand for Credit from Consumer End”
The credit industry is witnessing robust demand from the customer end.
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.
“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.
“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.
The United States credit reporting market is currently estimated at US$ 6 billion and is expected to reach US$ 10 billion by 2032.
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.
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.
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.
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.
Post-COVID, continuous improvements in economies across the world have led to more loan activities.
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.
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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.
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.
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The global credit reporting market is currently valued at US$ 17.82 billion.
Revenue from credit reporting services is anticipated to reach US$ 28.47 billion by 2032.
From 2017 to 2021, sales of credit reporting companies increased at 3.8% CAGR.
North America leads the global market for credit reporting accounting for 43% share.
Corporate credit reporting accounts for 63% share of the global market.