Credit Bureau Services Procurement Intelligence: Supplier Ranking & Matrix

The credit bureau services market is expected to grow at a CAGR of 12.6% from 2024 to 2030. The market for credit bureaus is expected to grow in the next few years due to the rising demand for credit cards. Credit card benefits, such as unlimited reward points with usage, insurance protection, discounts, and cashback, help increase credit scores. Further, credit card issuers provide credit bureaus with details about cardholder activity that help them confirm each customer's credit ratings, which serve as the foundation for loan applications.

As per the U.S. Federal Reserve Bank report, 82% of adults had a credit card in 2023, and 36% of adults applied for some type of credit in 2023. The adults with a minimum income of USD 100,000 held a credit card in the U.S. in 2023. The rate of credit card applications remained robust throughout 2023 in the U.S.; it reached 29% in October 2023. Due to these factors, the usage of credit cards has increased, which in turn has led to an expansion in the market for credit bureaus.

A credit bureau acquires and maintains track of a variety of credit-related insights?on users and organizations, such as loans taken, overdraft facilities, and credit card usage. Increasingly, credit bureaus are partnering or collaborating with fintech companies to provide custom data analytics due to increasing demand for credit from new-to-credit (NTC) consumers. For instance, in 2023, credit bureaus witnessed more pronounced changes in the consumer credit market. As per the TransUnion report, the demand for auto and home equity loans has been steadily increasing since 2023. However, with increasing preference for credit products, the delinquency levels for personal loans and credit cards also rose in 2023.

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According to TransUnion’s 2023 Consumer Pulse study, 26% of Americans planned to seek a credit instrument in 2024. Of those, 53% wanted a credit card, 23% wanted a car lease or loan and 22% wanted a personal loan. Credit limits increased by 26% in 2023, as per Equifax estimates. The share of NTC customers dropped from 17% in September 2022 to 14% in September 2023. Despite this drop, consumption-led demand continues to drive the demand for credit globally. In India, between July to September 2023, in the MSME sector, NTC customers accounted for 46% of the credit demand. They are expected to drive growth notably.

The North American region accounts for the largest category share due to an increase in the number of people looking for credit products like loans and credit cards amidst rising consumer awareness of the importance of maintaining a good credit score and routinely checking credit reports. In most places, there are primarily three major credit bureaus in the world - Equifax, Experian, and TransUnion. However, a few medium-sized private credit bureaus are also present in a few countries apart from these three giant players.

Companies are concentrating their efforts on introducing cutting-edge technologies to strengthen their position in the industry. Blockchain technology enables instantaneous and transparent transaction initiation and execution amongst many parties. For instance:

• In May 2024, Equifax collaborated with the commerce platform, VTEX, to help prevent fraud for merchants worldwide. VTEX’s platform will utilize Equifax’s robust fraud prevention and detection capabilities and “Kount Payment Fraud” solution in this partnership. This will help both B2C and B2B merchants secure their business while providing enhanced customer solutions.
• In March 2024, TransUnion introduced its new platform called “OneTru” for managing, analyzing and providing data-related insights about customers. The platform unifies separate data and analytical resources designed for fraud prevention, credit risk, and marketing and then consolidates them into a single unified integrated layer. This strategy enables TransUnion to provide a more accurate, comprehensive and compliant picture of customers, regardless of the use case.