Credit data trends: what to look out for in 2025

You'd think the credit data market would be fairly predictable by now. But if there's one thing we've learned from working in credit risk for the last 30 years, change is constant.

While some organisations are paying up to five times more than their competitors, others have managed to secure much better deals. The difference often comes down to understanding where the market is heading and knowing how to use that knowledge in negotiations.

By understanding the patterns and developments that shaped 2024, you're better positioned to make strategic decisions about your credit data procurement in 2025. Let me explain what we've seen this year and where things are likely headed next…

Changing pricing structures

Let's start with what's probably affecting your budget most directly—pricing. Remember when volume-based pricing was the only option? The good news is we're now seeing more flexible models emerging, which means there's actually more room for negotiation than many procurement teams realise. 

Some of our banking clients have used this to their advantage, securing reductions of up to 50% on their previous contracts.

Of course, pure cost isn't the whole story. What we're seeing now is a growing emphasis on value-added services bundled into pricing packages. But here's the thing—not every organisation needs all these extras. That's why it's become crucial to understand exactly what you're paying for and whether it aligns with your actual needs.

Data quality and coverage improvements

The quality of credit data has taken an interesting turn this year. A key development has been the expansion of thin-file coverage. Several bureaux have enhanced their ability to assess creditworthiness for individuals with limited credit history. This matters because it's opened up new opportunities for lenders, particularly in the growing BNPL sector.

We've also noticed providers expanding their data partnerships, especially in areas like Open Banking and alternative data sources. 

Several major changes have influenced how credit data is handled. Take the new requirements for vulnerability flagging—they've added another layer to credit assessment processes. Some bureaux have responded by developing more sophisticated flagging systems, while others have opted for simpler solutions. Here's what matters: these differences are creating new points for negotiation in bureau contracts.

Credit data trends to watch in 2025

Alternative data sources are reshaping credit assessment in ways we couldn't have predicted. Open Banking was just the beginning—now we're seeing the integration of utilities data, rental payments, and even digital footprint analysis.

What's particularly interesting is how this affects pricing. Traditional credit searches are being supplemented or even replaced by these new data streams. We've noticed some forward-thinking organisations negotiating blended pricing models that combine traditional and alternative data sources, leading to significant cost savings.

Here's what we're seeing on the horizon: AI-powered analytics are becoming a standard feature rather than a premium add-on. The bureaux that adapt their pricing models accordingly will likely gain a competitive edge. 

The focus on ESG data is intensifying too. Several bureaux are developing sustainability risk indicators and social impact scores. 

Speaking of pricing, we're tracking an interesting shift in how bureaux are positioning themselves for 2025. Some are moving towards more transparent, modular pricing structures. Others are bundling services into comprehensive packages. Understanding these different approaches will be crucial for negotiating competitive rates.

Top strategies to consider for 2025

Smart organisations aren't waiting until their contracts expire to plan their next steps. The credit data market is evolving rapidly, which means there's room for negotiation even mid-contract.

We've seen companies save between 25% and 50% on their credit data costs just by timing their negotiations right. The key is understanding your leverage with the right levers—whether that's contract renewal dates, changes in data needs, or shifts in market pricing.

Contract flexibility has become non-negotiable. The most successful organisations are securing agreements that allow them to adjust their data consumption as their needs change. One of our banking clients recently negotiated a contract that included quarterly volume reviews—this meant they could scale up or down without penalty.

Let's talk about multi-bureau strategies. They're not just for the big players anymore. We're seeing mid-sized organisations successfully implementing dual-provider approaches. This not only improves data coverage but creates healthy competition between providers. Here's the result: better service levels and more competitive pricing.

Of course, cost optimisation isn't just about getting lower prices. It's about making sure you're paying for what you actually need. You might be surprised how many organisations are paying for premium features they rarely use. 

Technology integration costs need careful attention too. Some bureaux are offering attractive base rates but adding substantial charges for API access, real-time updates, or custom integrations. Understanding these potential hidden costs is crucial for 2025 planning.

Recommendations: your action plan for 2025

Contract reviews should be your first priority going into 2025. With all these market changes, you might be surprised by what's possible—even if you're mid-contract. Our experience shows that waiting for renewal time isn't always the best strategy.

Start by taking a close look at your current data usage patterns. You might be surprised how many organisations we work with discover they're paying for services they rarely use. A detailed audit of your credit data consumption can reveal immediate savings opportunities.

Here are some practical steps you can take right now:

• Review your API integration costs. Are you paying premium rates for features that other bureaux include as standard?
• Check your contract flexibility. Can you adjust volumes without penalties? If not, this should be a key point in your next negotiation.
• Consider your multi-bureau strategy. Having comparison data not only improves coverage but gives you leverage in pricing discussions.
• Look at your technology integration costs. Are you paying separately for features that could be bundled into your core package?

You know what we've found particularly effective? Starting conversations with bureaux well before contract renewal time. It gives you room to explore options without time pressure and often leads to better terms.

Of course, keeping up with market rates is crucial. We're seeing pricing variations of up to 5 times higher between competitors for similar services. That's why regular benchmarking exercises are so valuable—they give you solid evidence for negotiation.