The global Credit Risk Assessment Market is estimated to be valued at US$ 7.31 Bn in 2022 and is expected to exhibit a CAGR of 12.4% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
The credit risk assessment market provides solutions that analyze a consumer’s or business’s credit history to determine the ability to pay back future debts. These solutions help lenders minimize losses from loan defaults through accurate risk prediction. They analyze multiple data sources like payment history, credit usage, public records and inquiries to generate a risk score. Accurate credit risk assessment allows expansion of access to credit for more individuals and businesses.
Market key trends:
One of the key trends in the credit risk assessment market is increased utilization of alternative data sources. Traditionally, credit scoring solutions relied only on financial data from credit bureaus. However, with widespread digitalFootprint of consumers, new sources of information are now available. Solutions are tapping into transaction data from bank accounts, telecom services usage, social media behavior and more to develop more robust risk profiles. This allows assessment of “thin file” or “no file” customers as well with limited or no credit history. Evaluation of diverse data sets improves prediction accuracy and supports financial inclusion.
The global credit risk assessment market is segmented by component, deployment type, organization size, and vertical. Based on component, the solution segment dominated the market in 2023 and is expected to continue its dominance during the forecast period. Credit risk assessment solutions allow financial institutions and companies to analyze customers’ creditworthiness and make informed lending decisions. The increasing demand for evaluating credit risks associated with individuals and businesses is driving the adoption of credit risk assessment solutions.
Global Credit Risk Assessment Market Demand is expected to witness high growth, exhibiting CAGR of 12.4% over the forecast period 2023 – 2030, due to increasing financial frauds and the need for effective risk management.
The market size is projected to grow from US$ 7.31 Bn in 2023 to US$ 17.34 Bn by 2030.
North America dominated the credit risk assessment market in 2023 and is expected to continue its dominance during the forecast period. The presence of major players such as FICO, Equifax, Experian, and TransUnion is driving the growth of the credit risk assessment market in the region. Additionally, the growing financial frauds and stringent compliance standards are fueling the demand for advanced credit risk assessment solutions in North America.
Key players operating in the credit risk assessment market are Experian, Equifax, TransUnion, FICO, Moody’s Analytics, Oracle, IBM, SAP, SAS Institute, Fiserv, Pegasystems, Genpact, ACL, Kroll, PRMIA, Riskonnect, RiskSpotter, Riskdata, BRASS, and Misys. Experian, Equifax, and TransUnion jointly dominated the market in 2023 due to their strong network and expertise in credit report generation and analytics.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it