Credit Score, Credit Report and Credit Check Services Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product Type (Credit Score, Credit Report, Credit Check), By Application (Private Credit, Enterprise Credit, Others), And By Geography - Forecasts From 2023 To 2028

A credit score is crucial in a consumer's financial picture. Some lenders combine the consumer's credit score with credit report information to warn the consumer about the risk of borrowing. Credit scores and reports are yardsticks that help NBFCs, banks and financial institutions help to checks the ability of an individual if can pay his debt on time. The major importance of the credit score is thus in the risk assessment of the individual or the asset 

Credit scores are utilized by lenders such as banks that provide mortgage loans and credit card companies that finish automobile dealership financing transactions. A credit score assists the lender in determining whether or not to extend credit and what the parameters of the offer should be. The key market growth drivers for credit scores, credit reports, and credit check services are rapidly increasing credit card users, rising credit card debt globally, and rising company and consumer demand for loans. Developing economies provide considerable potential for credit score and report service companies since banks increasingly rely on the credit report and score as they estimate consumer credit eligibility due to the high likelihood of customers turning bad debts to banks. Trends like the adoption of advanced technologies such as Big Data, AI, and IoT to develop credit score models are expected to create massive growth opportunities during the forecast period.

However, lack of transparency and data privacy concerns, wrongdoings by the credit score companies, and stringent rules and regulations implemented by governmental and various other institutions are expected to restrain the market growth during the forecast period. For example, in August 2022, news broke that Equifax, a renowned credit bureau, had sent lenders incorrect data, resulting in certain consumers' credit scores being over 25 points off.

Increasing demand for loans will spur growth

One of the prime factors boosting the growth of credit scores, credit reports, and credit check services market is the growing demand for loans. Loans of all kinds, including personal, home loans, car loans, educational, and other loans, have been quite popular in recent years, and this pattern is expected to continue. Additionally, the importance of a credit score has increased because it is one of the key requirements for receiving a loan from a bank. According to Federal Reserve data,  Domestic credit in the United States climbed 8.6% year on year in March 2022, compared to a 16.3% year-on-year increase in the preceding quarter. From December 2002 to March 2022, US domestic credit growth averaged 5.9% year on year. The statistics set a new high of 19.5% in June 2020 and a new low of -2.9% in June 2010. Thus, the risk evaluation of the person or asset is where the credit score is most crucial. As a result, as the need for loans increases, so does the need for services that provide credit scores and credit reports. As a result, these are the primary aspects that create attractive growth potential for credit scores, credit reports, and the credit check services market.

Businesses could enhance their credit limit against their existing line of credit. All of this would not have been feasible without the assistance of credit bureau firms. Credit report businesses evaluate consumers on behalf of lenders based on previous credit data and give the reports to lenders so that they may make sound decisions. Credit reporting services are now available in almost every country where the Internet is available, thanks to digitization. Potential borrowers can now examine their credit reports/scores on their smartphones and select the best possible deal based on their needs.

Asia Pacific is anticipated to hold a significant amount of the market share during the forecast period

Asia Pacific region will hold a significant amount of market share in credit scores, credit reports, and credit check services. This region will witness high growth during the forecast period owing to an increase in credit demand in developing economies like India, Japan, and China. According to the latest Reserve Bank of India (RBI) figures, sustained demand for credit increased bank loans by 17.2% year on year (Y-o-Y) in November. Nonetheless, the year-on-year increase in loans during the month under review was slightly lower than the near-18% year-on-year increase in October. Outstanding bank credit stood at Rs 129.5 trillion as of November 18, according to data on credit sectoral deployment. Loans to the services sector, in particular, increased 21.3% year on year to over Rs 33.2 trillion. Loans to non-banking financial businesses (NBFCs) increased 33% year on year. According to the Bank of Japan’s recent data, Japanese bank lending rose 1.8% in July 2022 from a year earlier, accelerating from the previous month. Developing economies in this region provide considerable potential for credit score and report service companies since banks increasingly rely on credit reports and scores as they estimate consumer credit eligibility due to the high likelihood of customers turning bad debts to banks. participation has been an important growth driver for the market in the region. Rising government initiatives in this region regarding credit demand will also accelerate market growth. The Indian government has launched numerous programmes, including the Jan-Dhan Yojna, Mudra Yojna, and integrating Aadhar with banks, among others, which have aided the credit market's growth. Around 450 million new bank accounts were opened and integrated into the Indian financial system as part of the Jan-Dhan Yojna.

Market Key Developments

• 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 March 2022, Equifax announced the acquisition of Data-Crédito, the Dominican Republic's largest credit reporting firm. This move will assist the organization in expanding its international presence and providing more information to clients worldwide.

Credit Score, Credit Report and Credit Check Services Market Scope:

 

Report Metric	Details
Growth Rate	CAGR during the forecast period
Base Year	2021
Forecast Period	2023–2028
Forecast Unit (Value)	USD Billion
Segments Covered	Product Type, Application, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Experian, Shanghai Credit Information Co. Ltd., Equifax, PrivacyGuard, Identity Guard, Credit Sesame, Trans Union, Tokyo Chamber Of Commerce And Industry, Graydon International Co., Zhima Credit
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Product Type
  • Credit Score
  • Credit Report
  • Credit Check
• By Application
  • Private Credit
  • Enterprise Credit
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. CREDIT SCORE, CREDIT REPORT AND CREDIT CHECK SERVICES MARKET ANALYSIS, BY PRODUCT TYPE

5.1. Introduction

5.2. Credit Score

5.3. Credit Report

5.4. Credit Check

 

6. CREDIT SCORE, CREDIT REPORT AND CREDIT CHECK SERVICES MARKET ANALYSIS, BY  APPLICATION

6.1. Introduction

6.2. Private Credit

6.3. Enterprise Credit

6.4. Others

 

7. CREDIT SCORE, CREDIT REPORT AND CREDIT CHECK SERVICES MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Others

 

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. COMPANY PROFILES

9.1. Experian

9.2. Shanghai Credit Information Co. Ltd.

9.3. Equifax

9.4. PrivacyGuard

9.5. Identity Guard

9.6. Credit Sesame

9.7. Trans Union

9.8. Tokyo Chamber Of Commerce And Industry

9.9. Graydon International Co.

9.10. Zhima Credit.

Experian

Shanghai Credit Information Co. Ltd.

Equifax

PrivacyGuard

Identity Guard

Credit Sesame

Trans Union

Tokyo Chamber Of Commerce And Industry

Graydon International Co.

 

Zhima Credit.