Price growth for consumer credit reporting services will remain relatively stable in the three years to 2017 due to increased consumer spending, rising aggregate household debt and greater access to credit.
Los Angeles, CA (PRWEB) February 13, 2015
Consumer credit reporting services have a buyer power score of 3.4 out of 5, which reflects moderate negotiating strength for buyers. Demand for consumer credit reporting services has been rising in line with the recovering economy and growing borrowing activity by consumers. “Over the three years to 2014, buyers have continued to rely on vendors to gather and distribute historical credit information,” says IBISWorld procurement analyst Kiera Outlaw. “The ongoing need to evaluate consumer credit, coupled with easier access to credit, increasing aggregate household debt and strengthening consumer spending has been causing service prices to rise.” Prices are forecast to rise further in the three years to 2017. Although rising service prices have hurt buyers' purchasing power, buyers have been benefiting from a low level of price volatility during the recent period.
The consumer credit reporting services market is moderately concentrated, with Equifax, Experian and TransUnion holding the majority of total market revenue due to their massive data networks and inter-bureau reporting arrangements. These major consumer credit reporting firms have also started to offer business credit reports and other related support services to expand their competitive positions. Nevertheless, the growing adoption of online credit reporting platforms has made it easier for other vendors to enter the market, including a number of specialty firms that focus on reporting nontraditional credit data. “Suppliers can obtain high profit margins in this market, presenting some opportunity for buyers to negotiate lower prices, particularly when bundling multiple services from a single supplier,” adds Outlaw.
Buyers face a mixture of risks and opportunities throughout the purchasing process. As a result, buyer negotiation power is negatively impacted by the lack of viable substitutes and switching costs that can arise due to a moderate level of service specialization. Alternatively, buyers benefit from a low total cost of ownership, short buying lead time, low supply chain risk and minimal chance of vendor default. For more information, visit IBISWorld’s Consumer Credit Reporting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of consumer credit reporting services. Vendors in this market provide objective reports on each consumer’s credit history, which buyers can use to make informed business decisions. Insurance companies, human resources departments, property managers and institutional creditors request consumer credit reports. Individual consumers also purchase reports to evaluate their own credit standing and to address potential data errors. Consumer credit reports usually generate a score based on a consumer’s timeliness of payments, level of debt, credit history length and other relevant information sourced from public records. This report excludes credit counseling and credit card services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.