by Credit risk assessment solutions analyze a variety of financial and non-financial parameters to assess the probability of default and expected credit losses for potential borrowers. The growing demand for streamlining loan underwriting processes and complying with stringent banking regulations has been fueling the adoption of credit risk assessment solutions across retail and commercial banks.
The Global Credit Risk Assessment Market is estimated to be valued at US$ 9.52 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the credit risk assessment market are Koninklijke Philips N.V., Sonic Concepts, Inc., Theraclion, Sonablate, Alpinion Medical Systems Co., Ltd., Shanghai Carnation Medical Technology Co., Ltd., Insightec, FUS Instruments Inc., Mianyang Sonic Electronic, Profound Medical, Merz Pharmaceuticals GmbH, Image Guided Therapy, and Promedica Bioelectronics s.r.l. These players are focusing on developing specialized credit risk assessment solutions and strengthening their presence across major banking hubs worldwide.
The growing demand for loans and other financial services from consumers and businesses is anticipated to drive the need for sophisticated credit risk assessment solutions. More accurate credit risk evaluation helps lending institutions make faster credit decisions and expand their customer base.
Banks are also expanding their credit risk assessment capabilities globally to enter new markets and offer customised risk assessments based on regional credit patterns. The rising globalization of banking operations will continue augmenting the deployment of credit risk assessment solutions over the forecast period.
Market Key Trends
The increasing compliance burden imposed by financial regulators worldwide on assessing credit, concentration, and related risks is a key trend spurring investments in credit risk assessment technology. Regulations such as Basel III aim to strengthen banks’ risk management practices and infrastructure. Advanced credit risk assessment tools enable dynamic monitoring of evolving portfolio risks and assist banks in meeting stringent compliance mandates. This regulatory driver is expected to persist as a major growth factor for the credit risk assessment market over the coming years.
Porter’s Analysis
Threat of new entrants: The Credit Risk Assessment Market Demand requires high initial costs for technologies and systems development. This acts as a barrier for new companies.
Bargaining power of buyers: Individual buyers have low bargaining power compared to large financial institutions in this market due to the specialized nature of credit risk assessment solutions.
Bargaining power of suppliers: A few major players dominate the supply of credit risk assessment solutions. This gives them significant bargaining power over buyers.
Threat of new substitutes: There are limited substitute alternatives for credit risk assessment. Customers depend on specialized technical solutions from market leaders.
Competitive rivalry: Being a specialized market, companies focus on technology leadership through heavy investments in R&D and service differentiation to gain competitive advantage.
Geographical Regions
North America currently holds the largest share of the global credit risk assessment market, with the U.S. being the major revenue generator. This is attributed to presence of financial institutions that extensively use credit risk assessment solutions.
The Asia Pacific region is expected to grow at the fastest pace during the forecast period. This is due to growing economies such as India and China that are seeing rising adoption of advanced risk management practices among banks and financial institutions to aid business expansion.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
