Credit Bureaus & Rating Agencies in the US
Credit bureaus and credit rating agents faced much volatility from downstream markets during the current period as COVID-19 and other economic disruptions hung over the US Economy. The diverse nature of downstream clients helped to shield the industry from more significant troubles. Throughout 2020,...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | Credit bureaus and credit rating agents faced much volatility from downstream markets during the current period as COVID-19 and other economic disruptions hung over the US Economy. The diverse nature of downstream clients helped to shield the industry from more significant troubles. Throughout 2020, only a few credit reporters and CRA's downstream clients were greatly affected. Consumers and non-banking businesses took a big hit as unemployment skyrocketed and business closures spiked. Investment from banking institutions and federal and state governments stopped any other falling demand. Downstream demand was further spurred by increasing aggregate household debt as a result of low interest rates and greater financial innovation. High demand from banking institutions and growing household debt also raised profit for credit bureaus and rating agencies.
The industry's performance took a turn for the worse in 2022 as rising interest rates increased recessionary fears. This reduced stock prices and hindered spending on rating agencies' services from financial institutions. Revenue recovered in 2023 and 2024 as investors became more confident and stock prices rose. Overall, revenue for credit bureaus and rating agencies in the United States is anticipated to expand at a CAGR of 5.1% during the current period, reaching $17.1 billion in 2024. This includes a 6.1% increase in revenue in that year.
The industry's performance will be constrained during the outlook period. Stable economic growth will boost business formation, increasing the number of loans in circulation and raising downstream demand for rating agencies' services. Despite this, economic uncertainty will reduce aggregate household debt, hindering demand for individual credit reports. Slower growth in the S&P 500 will constrain spending from financial institutions, reducing revenue for rating agencies. Overall, revenue for credit bureaus and rating agencies is forecast to creep upward at a CAGR of 0.7% during the outlook period, reaching $17.8 billion in 2029. |
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