Credit Reporting Services
Description
Companies in this industry compile, manage, and report credit information on businesses and consumers. Major companies include Dun & Bradstreet, Equifax, Moody's, S&P Global, and TransUnion (all based in the US), as well as Experian (Ireland) and Creditreform (Germany).
Most large credit reporting services companies operate internationally and are rapidly expanding in emerging markets in Asia/Pacific, Latin America, and Africa. Ireland, Australia, Iceland, the US, and Germany, have well-established credit reporting systems, according to World Atlas.
The US credit reporting services industry consists of about 500 establishments (single-location companies and units of multi-location companies) with annual revenue of about $10 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the volume of financial transactions and by the health of the economy. The profitability of individual companies depends largely on efficiency of operations. Large credit reporting companies have significant economies of scale in operations. Small companies can compete effectively by operating in niche markets, such as business credit, tenant screening, or employment screening. The US industry is highly concentrated: the 50 largest firms account for more than 95% of revenue, and the four largest firms account for about 60% of revenue.
Credit reporting services may face competition from companies who choose to bring their credit reporting activities in-house. Some credit data is available via public databases that the internet has made more accessible.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial credit rating services account for about 60% of US industry revenue, while individual credit rating services account for about 35%. Government rating services only account for about 5%.
Credit reporting agencies help businesses decide whether to extend credit to customers. Credit reports are used to evaluate applications from businesses and consumers for credit cards, auto and bank loans, mortgages, and business accounts.
Top companies in the industry maintain between 200 million and 500 million credit files worldwide. Companies collect credit information from a wide variety of sources such as businesses, banks, credit card companies, mortgage bankers, finance companies, court records, and government agencies. Companies often buy, sell, or share data with others.
A typical consumer credit report shows current and historical status of credit card and auto loan accounts, bank loans, mortgages, public information about relevant court proceedings, and recent credit inquiries. In addition to listing information, reporting agencies use proprietary formulas to produce a credit "score" that allows customers to rate credit risks. Customers, such as banks and other lenders, often develop their own scoring systems, taking into account scores from one or more credit reporting agencies in addition to other sources to determine a client's creditworthiness. The FICO score is one of the most widely used scoring systems.
Most large credit reporting services companies operate internationally and are rapidly expanding in emerging markets in Asia/Pacific, Latin America, and Africa. Ireland, Australia, Iceland, the US, and Germany, have well-established credit reporting systems, according to World Atlas.
The US credit reporting services industry consists of about 500 establishments (single-location companies and units of multi-location companies) with annual revenue of about $10 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the volume of financial transactions and by the health of the economy. The profitability of individual companies depends largely on efficiency of operations. Large credit reporting companies have significant economies of scale in operations. Small companies can compete effectively by operating in niche markets, such as business credit, tenant screening, or employment screening. The US industry is highly concentrated: the 50 largest firms account for more than 95% of revenue, and the four largest firms account for about 60% of revenue.
Credit reporting services may face competition from companies who choose to bring their credit reporting activities in-house. Some credit data is available via public databases that the internet has made more accessible.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial credit rating services account for about 60% of US industry revenue, while individual credit rating services account for about 35%. Government rating services only account for about 5%.
Credit reporting agencies help businesses decide whether to extend credit to customers. Credit reports are used to evaluate applications from businesses and consumers for credit cards, auto and bank loans, mortgages, and business accounts.
Top companies in the industry maintain between 200 million and 500 million credit files worldwide. Companies collect credit information from a wide variety of sources such as businesses, banks, credit card companies, mortgage bankers, finance companies, court records, and government agencies. Companies often buy, sell, or share data with others.
A typical consumer credit report shows current and historical status of credit card and auto loan accounts, bank loans, mortgages, public information about relevant court proceedings, and recent credit inquiries. In addition to listing information, reporting agencies use proprietary formulas to produce a credit "score" that allows customers to rate credit risks. Customers, such as banks and other lenders, often develop their own scoring systems, taking into account scores from one or more credit reporting agencies in addition to other sources to determine a client's creditworthiness. The FICO score is one of the most widely used scoring systems.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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