The big data analytics market is expected to nearly double within the next five years, from $39b in 2015 t $76ob in 2020 according to a recent study by Research and Markets. Seeking Alpha recently concluded in a report about Equifax that credit information providers are well-positioned to benefit from the massive growth of the Big Data Analytics market.
According to a research report published by MarketsandMarkets, the fraud detection & prevention market is expected to grow from US$8.87b in 2014 to US$20.49b in 2019, representing a CAGR of 18.2% during said time period. Again the credit information industry is well-positioned to benefit from the growth in this market.
Nevertheless the Seeking Alpha report opines that credit information providers could be highly sensitive to macro forces, particularly consumer credit, as exemplified by the ‘headwinds comments’ of CEOs during the last year about the poor performance of the mortgage origination market. This makes the credit information suppliers susceptible to consumer credit trends. In recent years, asset prices have been on the rise, with most if not all asset classes recovering from the 2008 crisis. Incomes have similarly been on the rise, evident from the expanding US GDP. High asset prices and increasing incomes are the major factors that lenders consider in order to determine if borrowers are credit worthy. Hence, with the Federal Reserve’s recent intentions to increase interest rates in the near future, one should keep a hawk’s eye on the central bank policy, consumer credit and incomes, as they would provide signals as to whether the industry would face renewed headwinds.
Source: Seeking Alpha
