Credit & Financial Information:  Growth Drivers

Factors which will drive the growth of companies in the Credit & Financial Information segment include:

  • Increasing importance of consumer markets. Concerns over privacy issues and identity fraud continue to increase, and show little sign of abating.
  • Diversification into niches and new services. As online tools become ever more complex, publishers across a variety of sectors are finding success in choosing discrete areas of specialization, rather than trying to provide broad service ranges for large end-user groups.
  • Partnerships. The networked nature of the internet has increased the value of partnerships.
  • Geographic expansion. Credit information providers tend to move into new geographic markets either through alliance or acquisition.
  • Local competition. Governments sometimes provide financial or other support to locally-based ratings agencies and may from time to time establish official ratings agencies, credit rating criteria, or procedures for evaluating local issuers.
  • Integration of content into workflow. Creating and delivering software and tools which are tightly integrated with content and embed the information provider deeply into its customers’ workflow is the Holy Grail for publishers in a range of information segments, from B2B, to C&F, to Scientific, Technical & Medical (STM) publishing. This factor holds particular resonance for C&F players because of their reliance on electronic content.
  • Delivery of content to mobile platforms. The use of content via mobile devices, particularly BlackBerrys, is rife in the financial marketplaces, and it seems likely that content delivery will evolve over the next few years to encompass mobile platforms more comprehensively.
  • Importance of compliance toolsets: In addition to providing financial data, C&F publishers increasingly recognize the important role they can play in helping their existing customers to conform with the strict regulations applicable to the industries in which they operate, such as the Patriot Act, Sarbanes-Oxley, and the European Commission’s Markets in Financial Instruments Directive (MiFID), which came into force in November 2007.        
  • Extension of service offerings along the value chain. Rather than launch a new product in a new market, publishers across a range of market segments have been trying over the last few years to gradually expand their range of services to provide offerings that align to different sections of their value chain.
  • Acquisitions tend to be of technology rather than information companies. Examples include ChoicePoint’s acquisition of ePolicy.
Organic Growth was more important than acquisitions for the C&F segment in 2006 and this trend has continued into 2007, with the exception or large deals such as the Thomson=Reuters merger.   The top five players in 2006 were Bloomberg, Reuters, Standard & Poor’s, Moody’s Corporation and Thomson Financial.
Source:  Outsell Inc.  Market Intelligence Service: Market Analysis – Credit & Financial information: 2007 Market Forecast and Trends Report.  To buy the full report contact Outsell Inc.

BIIA Newsletter November – 2007 Issue