2023
9
UK Credit Monitoring Market Report 2023
2023-02-22T03:07:01+00:00
OX1155331
2195
160702
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Report
en_GB
“Amid a challenging economic climate, some consumers are worrying about their credit scores as many are seeing their household budgets squeezed. This could further boost engagement with credit monitoring services.

UK Credit Monitoring Market Report 2023

£ 2,195 (Excl.Tax)

Description

Discover the latest trends in the credit monitoring industry with our in-depth report. Our UK credit monitoring market report features valuable insight into market trends and consumer behaviour. Use Mintel’s expert credit report market analysis to stay informed and tackle challenges in your industry.

Credit Monitoring Services Market – Current Landscape

With rising inflation fueling more anxiety among consumers, use of credit monitoring services remains high. The cost-of-living crisis has highlighted the importance of credit monitoring services, and 63% of adults said they checked their credit score in 2022.

Despite the continuing popularity of credit monitoring services, more than a third of adults never check their credit score. Brands and companies can do more to engage these consumers, and dispel persisting myths around credit monitoring and reports.

  • Credit monitoring market share: 57% of adults who check their credit score used Experian to do so.

Credit Monitoring Market – Consumer Trends

Credit monitoring services are hugely popular due to the convenience they offer. Consumers can use them to easily check their credit scores for free, and even gain a better understanding of how it can be improved.

Despite their popularity, more than a third of adults never check their credit scores. A lack of need for credit is the top barrier to use. Moreover, certain myths about credit reporting exist and may limit the usage of credit monitoring services.

Consumer Beliefs and Attitudes

  • 32% of adults wrongly believe that checking their credit reports can damage their scores, rising to 42% among Gen Z.
  • Almost half of those who never check their credit score cite a lack of need for credit as the main reason.
  • 37% of Gen Zs who have never checked their credit score don’t know how.

Opportunities in the Credit Monitoring Market

While certain misconceptions about credit monitoring are likely to limit the usage of services to an extent, they also present an opportunity for companies. Educating consumers, especially younger ones, should continue to be a focus for providers to increase understanding of credit monitoring and boost use of their services.

In order to further broaden their consumer base, credit monitoring providers should encourage more non-users to take advantage of their services. Brands should focus on highlighting that their services can have a broader role and provide a gateway to financial wellness.

Read on to discover more about our UK Credit Monitoring Market Report 2023, read our UK Credit Cards Market Report, or take a look at all of our financial services market research.

Quickly Understand

  • The frequency of checking credit scores among consumers, and how this has changed compared to 2020, 2018 and 2016.
  • Awareness and use of main brands in the market.
  • Reasons to check credit scores.
  • Barriers to using credit monitoring services.
  • Understanding of credit monitoring services.

Popular Brands Covered in this Report

Experian/CreditExpert, ClearScore, Credit Karma, Equifax, MoneySavingExpert’s Credit Club, UK Credit Ratings, TotallyMoney, CheckMyFile, CreditWise from Capital One.

Expert Analysis from a Financial Services Specialists

This report, written by Stefania Apostol, a leading analyst in the Financial Services sector, delivers in-depth commentary and analysis to highlight current trends in the UK credit monitoring market and add expert context to the numbers.

Amid a challenging economic climate, some consumers are worrying about their credit scores as many are seeing their household budgets squeezed. This could further boost engagement with credit monitoring services. However, myths about credit scores and reports continue to persist, and providers should continue to focus on tackling these to improve consumer knowledge and boost engagement.

Stefania Apostol - Financial Services AnalystStefania Apostol
Senior Financial Services Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The market
    • Use of credit monitoring services remains strong
      • Figure 1: Use of credit monitoring services, 2016-22
    • Net unsecured lending returns to growth
      • Figure 2: Monthly changes of net consumer credit lending (seasonally adjusted), 2017-22
    • Companies and brands
    • Experian is the most used brand…
      • Figure 3: Usage of selected credit check and monitoring services among credit score users, 2022
    • …but ClearScore continues to expand its regular user base
      • Figure 4: Awareness and usage of selected credit check and monitoring services among credit score users, 2022
    • The consumer
    • Monitoring credit score and credit are the top reasons for credit check activity
      • Figure 5: Reasons to check credit scores, 2022
    • Intention to check credit scores is higher among younger generations
      • Figure 6: Likelihood of checking credit scores, 2022
    • A lack of need for credit is the main barrier to using credit score services
      • Figure 7: Reasons for not using credit monitoring services, 2022
    • Majority of users think credit reports are easy to use and understand
      • Figure 8: Consumer attitudes towards credit monitoring services, 2022
    • Most people have a good understanding of credit monitoring services…
    • …but some myths still persist
      • Figure 9: Understanding of credit monitoring services, 2022
  3. Issues and Insights

    • The cost-of-living crisis highlights the importance of credit monitoring services
    • Improve knowledge of credit monitoring services
  4. Market Size and Performance

    • Use of credit monitoring services remains strong
      • Figure 10: Use of credit monitoring services, 2016-22
      • Figure 11: Population estimates of consumer use of credit monitoring services, 2016-22
  5. Market Drivers

    • High inflation impacts household finances…
      • Figure 12: Issues faced in the last two months, by financial situation, 2022
    • …and undermines consumer confidence
      • Figure 13: Financial confidence index, 2016-23
    • Net unsecured lending returns to growth
      • Figure 14: Monthly changes of net consumer credit lending (seasonally adjusted), 2017-22
    • Secured lending recovers after pandemic drop
      • Figure 15: Monthly changes of secured lending to individuals (seasonally adjusted), 2017-22
    • Rising interest rates create opportunities for credit monitoring services
      • Figure 16: Bank of England base rate and monthly interest rates for credit cards and selected mortgage and personal loan products, 2017-22
    • Individual insolvency increased in 2022
      • Figure 17: Individual insolvencies (not seasonally adjusted) and breathing space registrations in England and Wales, by type, 2019-22
  6. Regulatory and Legislative Changes

    • FCA publishes its Credit Information Market Study Interim Report
    • UK government plans to reform the Consumer Credit Act
    • A new successor to the Open Banking Implementation Entity
  7. Awareness and Usage of Credit Score Brands

    • Experian is the most used brand
      • Figure 18: Usage of selected credit check and monitoring services among credit score users, 2022
    • ClearScore continues to expand
      • Figure 19: Awareness and usage of selected credit check and monitoring services among credit score users, 2022
    • Most users check their credit scores with more than one provider
      • Figure 20: Repertoire analysis of credit monitoring services used, 2022
      • Figure 21: Repertoire analysis of credit monitoring services used, by frequency of use, 2022
  8. Competitive Strategies and Launch Activity

    • Equifax and ClearScore revamp credit score scale
    • Open Banking gains traction among credit monitoring services
    • ClearScore focuses on Open Banking
    • Credit Karma partners with Bud to introduce Open Banking
    • ClearScore launches Triple Lock guarantee
    • Experian introduces Credit Lock to protect its customers from fraud
    • Lloyds Bank launches ‘Your Credit Score’ service
    • BNPL data to be included in credit reports
    • Nova Credit aims to be the UK’s first cross-border credit reference provider
  9. Advertising and Marketing Activity

    • Adspend recovers strongly after pandemic drop
      • Figure 22: Total above-the-line, online display and direct mail advertising expenditure, by credit monitoring companies, 2017/18-2021/22
    • Credit Karma is the biggest spender
    • Experian aims to guide people towards better credit choices
    • ClearScore focuses on offering consumers greater certainty in their credit choices
      • Figure 23: Top seven advertisers of credit monitoring services, above-the-line, online display and direct mail advertising expenditure only, 2017/18-2021/22
    • Digital advertising gains traction
      • Figure 24: Total above-the-line, online display and direct mail advertising expenditure, by media type, 2017/18-2021/22
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand attitudes: Experian is perceived as a brand with a good reputation
      • Figure 25: Attitudes, by brand, 2022
    • Brand personality: ClearScore is seen as accessible
      • Figure 26: Brand personality – macro image, 2022
    • MoneySavingExpert Credit Club is viewed as honest
      • Figure 27: Brand personality – micro image, 2022
    • Brand analysis
    • Experian stands out as a trusted brand with a good reputation
    • MoneySavingExpert Credit Club is perceived as honest
    • ClearScore is viewed positively
    • Credit Karma lacks differentiation…
    • …alongside Equifax
  11. Use of Credit Monitoring Services

    • Almost two thirds of adults use credit monitoring services
      • Figure 28: Use of credit monitoring services, 2022
    • Younger generations are the most engaged with credit monitoring services
      • Figure 29: Use of credit monitoring services, by generation, 2022
    • Those with healthy finances are more likely to be regular users
      • Figure 30: Use of credit monitoring services, by financial situation, 2022
  12. Reasons to Check Credit Scores

    • Monitoring rating changes and credit are the top reasons for credit check activity
      • Figure 31: Reasons to check credit scores, 2022
    • Older generations check if their information is accurate
      • Figure 32: Selected reason to check credit scores, by generation, 2022
    • Younger generations check their eligibility to take out credit products
      • Figure 33: Selected reasons to check credit scores, by generation, 2022
  13. Likelihood of Checking Credit Scores

    • Future growth is dependent on reaching younger consumers
      • Figure 34: Likelihood of checking credit scores, 2022
    • The cost-of-living crisis highlights the importance of credit scores
      • Figure 35: Likelihood of checking credit scores, by financial situation, 2022
  14. Barriers to Using Credit Score Services

    • A lack of need for credit is the main barrier to using credit score services
    • Access is not a major barrier
      • Figure 36: Reasons for not using credit monitoring services, 2022
  15. Attitudes towards Credit Monitoring Services

    • Majority of users think credit reports are easy to use and understand
      • Figure 37: Consumer attitudes towards credit monitoring services, 2022
    • Credit scoring is seen as an important measure of financial health
      • Figure 38: Belief that credit scoring is an important measure of financial health, by use of credit monitoring services, 2022
    • Offer personalised advice to struggling consumers
      • Figure 39: Willingness to pay for a credit check service offering personalised tips, by worries about credit scores, 2022
  16. Understanding of Credit Monitoring Services

    • Most people have a good understanding of credit monitoring services…
    • …but some myths still persist
      • Figure 40: Understanding of credit monitoring services, 2022
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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