We previously wrote that analytics and platforms are becoming key differentiators in business information services. 2011 and first half 2012 revenue growth figures of key players in credit information and rating services provide a stark contrast to those companies who do not have a substantial stake in analytics. Analytical services are growing at a very healthy double digit rate.
Consumer credit information services have rebounded with solid growth rates, but commercial credit information services have not. For instance Equifax consumer credit services grew at 19% in Q2! However, Equifax’s commercial credit information services were down -2% in line with its peers D&B (-2%), Bisnode (-5%), Creditreform Information 2011 (+1%), and Graydon 2011 (-5%). In stark contrast are the results of Creditsafe whose 2011 revenues grew at an impressive rate of 22%.
Analytics growth is only part of the proverbial Iceberg with many analytical services being packaged with other solutions and thus not reported separately. If you compare the relative low growth in commercial credit information with the high growth consumer credit information one could surmise that the latter is a much more ‘sexier’ business. Perhaps the key reasons are that consumer risk management processes are now fully automated while commercial credit assessment is not. Furthermore it can be assumed that lots of reporting on professionals and small businesses are imbedded in consumer credit files and not as extensively covered by the commercial credit files. If you compare the spectacular results of Creditsafe versus its peers one wonders what they have up their sleeves and what others have not. They seem to be bold and venture even where others fear to tread: The USA!
Incidentally Outsell Inc. published its Market Size, Share, Forecast and Trend Report for Credit & Financial Information (C&F Segment) on August 15 2012. The overall market for C&F grew by 7% to US$ 52.6 billion.