The global Credit Risk Assessment Market is estimated to be valued at US$ 7.31 Bn or Mn in 2023 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.
Market Overview:
The credit risk assessment market involves the evaluation of individuals and businesses to analyze their ability and likelihood of repaying debts. Credit risk assessment helps lenders and financial institutions make informed lending decisions. Products in this market include credit bureau products, scoring tools, analytical & decision solutions, point solution tools etc. These help assess creditworthiness through analyzing financial history, income levels, debts and other parameters. Credit risk assessment streamlines lending processes and reduces financial risks for lenders.
Market key trends:
The growing demand for advanced analytical tools is a key trend in the credit risk assessment market. Lenders are increasingly adopting artificial intelligence and machine learning-based tools to gain real-time insights, improve predictive capabilities and automate decision-making. Players like Experian are offering AI-powered real-time risk assessment solutions to help lenders make faster credit decisions. Adoption of such advanced analytical tools is expected to drive credit risk assessment market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The credit risk assessment market requires large investments in data collection and modeling capabilities which poses a moderate threat of new entrants.
Bargaining power of buyers: Individual buyers have low bargaining power in this market as credit risk assessment solutions are standardized and buyers have many options to choose from.
Bargaining power of suppliers: The market has few large players supplying specialized credit risk assessment solutions globally. This gives them significant bargaining power over buyers.
Threat of new substitutes: There are limited substitutes available for credit risk assessment solutions. New entrants are working on alternate techniques like artificial intelligence but these are yet to gain mass adoption.
Competitive rivalry: Being an oligopolistic market with few global players, the competitive rivalry in the credit risk assessment market is high. Players compete on dimensions of pricing, functionality and customer experience.
Key Takeaways
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 use of advanced analytics in lending decisions.
Regional analysis: The North American region currently dominates the credit risk assessment market owing to high credit card usage and developed banking infrastructure in the US. Asia Pacific is expected to be the fastest growing market during the forecast period due to rising consumption credit and focus on financial inclusion in developing economies like India and China.
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, Misys. Key players are focusing on partnerships and acquisitions to enhance their service offerings and gain larger customer base.
Read More- https://www.newsstatix.com/credit-risk-assessment-market-future-insights-and-analysis/
