Credit Bureaus Global Market Report 2024

The credit bureaus market size has grown rapidly in recent years. It will grow from $122.44 billion in 2023 to $139.14 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. The expansion observed in the historical period can be attributed to the growth of the lending industry, initiatives for financial inclusion, compliance with regulatory and reporting requirements, the emphasis on risk management within financial institutions, and increased awareness among consumers regarding credit.

The credit bureaus market size is expected to see rapid growth in the next few years. It will grow to $223.38 billion in 2028 at a compound annual growth rate (CAGR) of 12.6%. Anticipated growth in the upcoming period is expected due to the utilization of alternative data sources and machine learning, the emergence of open banking systems, concerns regarding cybersecurity and data protection, government initiatives promoting financial inclusion, and shifts in consumer behavior within the financial sector. Key trends projected for this period encompass advancements in technology for data processing, the ongoing digital transformation within banking and finance, the integration of alternative data sources, the use of blockchain for identity verification, and a focus on empowering consumers within the financial landscape.

The surge in demand for credit cards is anticipated to fuel the expansion of the credit bureau market in the foreseeable future. Credit cards serve as a cash or check alternative, commonly offering an unsecured revolving credit line. Credit card providers regularly furnish credit bureaus with cardholder activity data, aiding in assessing individual creditworthiness. This information forms the basis for customers' loan eligibility and also grants perks such as unlimited reward points, insurance coverage, discounts, cashback, and the improvement of credit scores. For instance, as per the Federal Reserve Bank's November 2022 report, the credit card application rate in the US increased from 26.5% in 2021 to 27.1% in 2022. Consequently, the rising demand for credit cards is propelling the expansion of the credit bureau market.

Anticipated growth in the credit bureau market is driven by an escalating national unemployment rate. The upsurge in unemployment signifies a larger portion of the workforce actively seeking jobs but unable to secure employment, signaling economic hardships and potential societal ramifications. This trend can significantly impact credit bureaus due to the financial challenges faced by unemployed individuals, resulting in delayed bill payments and heightened credit utilization. For instance, as of November 2023, the U.S. Bureau of Labor Statistics (BLS) reported a national unemployment rate of 3.7%. The BLS also supplies comprehensive historical data, including state-specific unemployment rates, available in their State Employment and Unemployment Summary reports. These invaluable data sources enable a profound understanding of labor market dynamics and serve as vital tools for credit bureaus to evaluate credit risks, furnishing businesses and lenders with comprehensive credit reports.

The adoption of blockchain stands out as a significant trend gaining traction within the credit bureau market. Key industry players are directing their focus toward implementing cutting-edge technologies to fortify their market positioning. Blockchain, renowned for its immutable and shared ledger, facilitates seamless transactions among various stakeholders by enabling immediate, transparent, and secure exchanges of encrypted data. For example, in May 2021, TransUnion, a prominent U.S.-based consumer credit reporting firm, joined forces with Spring Labs, a U.S.-based software company, to launch a blockchain-driven credit data-sharing platform aimed at facilitating the secure exchange of sensitive information. TransUnion's utilization of blockchain technology in their data-sharing platform enhances the network effect, enabling credit bureaus and other entities to more accurately forecast the creditworthiness of individuals through a robust data ecosystem.

Major players in the credit bureau market are spearheading the development of cutting-edge products leveraging advanced technologies such as API platforms. These platforms, serving as software frameworks, offer a suite of tools and services for creating and managing application programming interfaces (APIs). They streamline the process for developers to efficiently build, test, and deploy APIs, ensuring seamless integration and communication across various software systems and applications. For instance, in August 2021, Bloom Credit, a credit agency and fintech platform based in New York, introduced Furnish by Bloom Credit. This automated furnishment solution enables businesses to report consumer activity simultaneously to all three major credit bureaus - Equifax, Experian, and TransUnion. The primary goal of this innovative product is to assist lenders in significantly reducing credit reporting errors, ultimately mitigating the adverse impact these inaccuracies may have on consumers.

Equifax, a consumer credit reporting agency based in the US, completed the acquisition of Data-Crédito in March 2022, with the specific financial terms undisclosed. This strategic acquisition empowers Equifax to provide financial institutions with enhanced access to valuable insights into clients' financial profiles during the lending process. By leveraging this new capability, Equifax aims to responsibly extend a wider range of mainstream financial service options to underbanked individuals. Data-Crédito, the acquired entity, operates as a consumer credit reporting agency based in the Dominican Republic.

Major companies operating in the credit bureaus market report are Fidelity Information Services, Intuit Inc., S&P Global Inc., Global Payments Inc., Experian PLC, Moody's Corporation, Global Database Ltd., Equifax Inc., TransUnion LLC, LexisNexis Risk Solutions, Dun & Bradstreet, Coface SA, CoreLogic Inc., Credit Karma LLC, Fair Isaac Corporation, QuestSoft Corporation, Identity Guard, Innovis Services Inc., Credit Information Bureau (India) Limited, PrivacyGuard LLC, Creditinfo Group PLC, FreeCreditReport.com, IdentityForce, Illion Data Registries Pty. Ltd., SCHUFA Holding AG, TrueIdentity, ID Analytics, Compuscan, Bureau van Dijk S.A., ARXivar S.p.A.

North America was the largest region in the credit bureau market in 2023. The regions covered in the credit bureaus market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the credit bureaus market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Credit bureaus offer three primary product types such as credit scores, credit reports, and credit check services. Credit scoring involves statistical analysis utilized by lenders and financial institutions to assess the creditworthiness of individuals or small, owner-operated businesses. Reports come in various types, including corporate and individual credit reports. These products cater to a range of end-users, including commercial entities and consumers seeking credit-related information.

The credit bureau market research report is one of a series of new reports that provides credit bureau market statistics, including credit bureau industry global market size, regional shares, competitors with a credit bureau market share, detailed credit bureau market segments, market trends, and opportunities, and any further data you may need to thrive in the credit bureau industry. This credit bureau market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The credit bureau market includes revenues earned by entities providing credit services such as credit account information, including payment history, the balance of an account, the date of the last financial activity, risk score, and the credit limit on the account. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.