Credit Risk Assessment Market Developments by 2031
The Credit Risk Assessment market is expected to register a CAGR of 15.3% in 2023–2031. Cloud-based solutions and financial inclusions are likely to remain key credit risk assessment market trends.
Credit Risk Assessment Market Analysis
Credit risk assessment is critical for identifying whether a customer is at risk of defaulting on payments. Carrying too many high-risk customers, or even just a few significant-transaction customers who may default, can be extremely devastating to your organization. When you invoice clients after delivering goods or services, you expose your company to late payment risks, which can impact cash flow. Effective credit risk assessments enable the creditor to determine consumer creditworthiness while lowering their financial risk.
Credit Risk Assessment Market Overview
Rising developments in the digital economy, new approaches to debt and saving, the gig economy, and others are some of the factors driving the demand for more accurate and reliable credit risk assessment models in the market. Traditionally, credit risk calculations considered specific characteristics such as prior credit usage, payment history, length, any applications made, and categories of credit when determining a person's or a business's creditworthiness. However, all of this is changing.
REGIONAL FRAMEWORK
Credit Risk Assessment Market Drivers and Opportunities
Technology and Analytics to Favor Market
New technology will have an impact on both customer expectations and risk management measures. First and foremost, banks have simple access to a large amount of data. The capacity to handle data more quickly and affordably allows banks to make better credit risk choices, monitor portfolios for financial crimes, and estimate operational losses. As machine learning progresses, data elaboration becomes more sophisticated. Every new piece of data that these models collect helps them learn, enhancing their ability to forecast over time. Some banks have already begun experimenting with automated collection and fraud detection systems. Finally, businesses can use the internet to crowdfund ideas that will improve their efficiency in specific areas.
Changing Consumer Behavior – An Opportunity in Credit Risk Assessment
The tech-savvy younger generation will be the key source of revenue for banks, with older bank customers adopting technology faster. Credit risk assessment services are now available in a broader range of highly competitive offers as a result of developments and investments in fintech businesses. Furthermore, banks are streamlining transactions, expanding the client experience, and increasing their value as a result of digitization.
Credit Risk Assessment Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Credit Risk Assessment market analysis are component and vertical.
- Based on component, the Credit Risk Assessment market is divided into software and services. The software segment held the largest share of the market in 2023.
- By vertical, the market is segmented into BFSI, healthcare, telecom & IT, government, manufacturing, retail, and others. The BFSI segment held the largest share of the market in 2023.
Credit Risk Assessment Market Share Analysis by Geography
The geographic scope of the Credit Risk Assessment Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
North America has dominated the Credit Risk Assessment market. Digital transformation fintech innovation and changing consumer preference in North America countries are driving the demand for Credit Risk Assessment in the region. The Credit Risk Assessment market is undergoing substantial development in North America, which can be attributed to changing consumer behavior.
Have a question?
Naveen
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
MARKET PLAYERS
Have a question?
Naveen
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Credit Risk Assessment Market Drivers and Opportunities
Technology and Analytics to Favor Market
New technology will have an impact on both customer expectations and risk management measures. First and foremost, banks have simple access to a large amount of data. The capacity to handle data more quickly and affordably allows banks to make better credit risk choices, monitor portfolios for financial crimes, and estimate operational losses. As machine learning progresses, data elaboration becomes more sophisticated. Every new piece of data that these models collect helps them learn, enhancing their ability to forecast over time. Some banks have already begun experimenting with automated collection and fraud detection systems. Finally, businesses can use the internet to crowdfund ideas that will improve their efficiency in specific areas.
Changing Consumer Behavior – An Opportunity in Credit Risk Assessment
The tech-savvy younger generation will be the key source of revenue for banks, with older bank customers adopting technology faster. Credit risk assessment services are now available in a broader range of highly competitive offers as a result of developments and investments in fintech businesses. Furthermore, banks are streamlining transactions, expanding the client experience, and increasing their value as a result of digitization.
Credit Risk Assessment Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Credit Risk Assessment market analysis are component and vertical.
- Based on component, the Credit Risk Assessment market is divided into software and services. The software segment held the largest share of the market in 2023.
- By vertical, the market is segmented into BFSI, healthcare, telecom & IT, government, manufacturing, retail, and others. The BFSI segment held the largest share of the market in 2023.
Credit Risk Assessment Market Share Analysis by Geography
The geographic scope of the Credit Risk Assessment Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
North America has dominated the Credit Risk Assessment market. Digital transformation fintech innovation and changing consumer preference in North America countries are driving the demand for Credit Risk Assessment in the region. The Credit Risk Assessment market is undergoing substantial development in North America, which can be attributed to changing consumer behavior.
MARKET PLAYERS
Credit Risk Assessment Market Report Scope
Credit Risk Assessment Market News and Recent Developments
The Credit Risk Assessment market is evaluated by gathering qualitative and quantitative data post post-primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Credit Risk Assessment and strategies:
- PayPal announced it has added new features to its complete payment solution for small businesses. The solution enabled small businesses to accept a range of payments, including PayPal, Venmo, and PayPal Pay Later products. Giving customers more choices in how they can pay can help drive checkout. (Source: PayPal, Press Release, 2023)
Credit Risk Assessment Market Report Coverage and Deliverables
The “Credit Risk Assessment Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global Credit Risk Assessment market is expected to grow at a CAGR of 15.3% during the forecast period 2023 - 2031.
Increasing financial transactions and technology & analytics are the major factors that propel the global Credit Risk Assessment market growth.
Cloud-based solutions and financial inclusions are anticipated to bring new Credit Risk Assessment market trends in the coming years.
The key players holding majority shares in the global Credit Risk Assessment market are Experian, Equifax, TranUnion, FICO, and Moody’s Analytics.
In terms of revenue, the BFSI segment held the major market share in 2023.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Get Free Sample For