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Who are the top players and what are their market share for credit underwriting software?
Hello! Thank you for your question about the credit underwriting software industry/market. As requested by our administrative staff, I have compiled an overview of the top five players in the credit underwriting software space. I have also provided an overview of the credit underwriting software market, as well as a high level analysis of the credit underwriting marketplace as a whole. I compiled my research using predominantly industry reports, trusted media sites and corporate websites.
In short, the largest segment of the credit underwriting marketplace, specifically in terms of product allocation, belongs to the credit card vetting process, followed closely by large corporate loans and mortgage underwriting. While many types of lenders put applicants through an underwriting process, unless associated with corporate lending, most people associate the underwriting process with acquiring a mortgage.
A report surveying credit underwriting practices confirms that the aggregate total commitment for credit card lending, as of June 2016, was just over $1.96 trillion. The aggregate total for large corporate lending followed closely at around $1.29 trillion, and finally residential first mortgage lending fell into place at nearly $1.1 trillion.
According to market reports, the 2017 valuation of the credit underwriting software market is predicted to round out at $1.56 billion. The predicted 2021 valuation of credit underwriting software is $2.33 billion. The global credit underwriting software market is projected to grow at a CAGR of more than 14% through the year 2021.
The top five players in the credit underwriting software space, including both traditional credit underwriting and mortgage underwriting, are, in descending order, FIS, Fiserv, D+H, EllieMae and Isgn.
In my deep dive below, I have expounded upon my methodology and my findings, and included a short profile of each of these companies, including their annual revenues and product offerings.
METHODOLOGY
I began my research process by exploring the credit underwriting software industry as a whole. During this research, I found an existing market report highlighting growth expectation and market drivers for the underwriting software space. Because most of the resources concerning underwriting revolve around the mortgage industry, I began to explore top players in this industry. In doing so, I found that the majority of the top players offering product solutions for mortgage underwriting (specifically in the software space) also offer financial technology for underwriting in a number of different lending scenarios. In conducting the search for credit underwriting software companies, I was led to both Owler and D&B Hoovers, which then allowed me to formulate a comprehensive competitive set within the industry. I then chose top players based on the annual revenue available for each organization's company profile.
INSIGHTS
As of January 2017, the credit underwriting software space had a valuation of $.77 billion. Market research indicates that the overall valuation predicted for 2017 is $1.56 billion. The same research also predicts a market valuation of $2.33 billion by the year 2021. These figures represent a CAGR growth rate of more than 14%.
Additionally, according to a 2016 survey of credit underwriting practices, the underwriting process across 18 various credit products eased by an average of 28% between the years 2015 and 2016. According to the survey, the reasons for eased underwriting practices include higher credit risk appetites, increased competition, and perceived improvements in the general economic condition.
It can be presumed that eased underwriting practices are contributing to the growth curve in the credit underwriting software market, as eased underwriting typically means an increase in the number of active borrowers across all lending areas.
KEY PLAYERS
*Note - Most of the key players in the credit underwriting software space also offer a wide variety of other fintech products and are not limited to the credit underwriting space alone. There are some companies dedicated solely to loan/lending software, but the top earners maintain a diversified product list.
1. FIS (Fidelity National Information Services Inc.) -- FIS is currently the largest provider of financial tech in the world. Serving more than 20,000 clients in more than 130 countries, FIS is responsible for moving more than $9 trillion around the world each year. The Fortune 500 company offers underwriting software for auto lending, mortgage services, and retail and consumer lending.
FIS is headquartered in Jacksonville, Florida and was founded in 1968. The company's CEO is Gary Norcross.
2. Fiserv Inc. -- Fiserv was founded in 1984 as an information management and electronic commerce systems provider. The company has continued to grow over the years and now offers a number of fintech solutions, including a full range of loan origination systems that have been designed to fit the needs of a wide variety of lenders. Fiserv solutions offer automated underwriting and tracking. The company provides products for all types of lending practices, including mortgage lending and automotive lending.
The company's CEO is Jeffrey Yabuki, who operates out of the company headquarters in Brookfield, Wisconsin.
3. D+H -- D+H offers core banking products, credit monitoring, identity products, checks and other financial technological solutions. The company claims to be the only organization offering comprehensive, start-to-finish solutions for lenders of all sizes and types. The company offers products for commercial lending, consumer lending, small business lending, mortgage lending, collateral management and compliance, and student lending.
4. EllieMae -- EllieMae serves only the residential mortgage industry and offers on-demand software specifically designed for the mortgage lending space. The company offers a wide array of products tailored to the residential lending space, including a series of products for underwriting needs.
The company was founded in 1997 in Pleasanton, California. EllieMae's CEO is Jonathan Corr and the company has annual revenues of around $357.1 million.
5. Isgn -- Isgn is a global provider in the mortgage lending space and offers innovative software products designed to streamline the underwriting process by providing solutions for lenders of all sizes.
The company was founded in 2007 and is headquartered in Palm Bay, Florida. Its CEO is Mr. Amit Kothiyal.
CONCLUSION
To recap, the largest segment of the credit underwriting marketplace, specifically in terms of product allocation, belongs to the credit card vetting process, followed closely by large corporate loans and mortgage underwriting. While many types of lenders put applicants through an underwriting process, unless associated with corporate lending, most people associate the underwriting process with acquiring a mortgage. The global credit underwriting software market is projected to grow at a CAGR of more than 14% through the year 2021. According to market reports, the 2017 valuation of the credit underwriting software market is predicted to round out at $1.56 billion. The predicted 2021 valuation of credit underwriting software is $2.33 billion. The top five players in the credit underwriting software space, including both traditional credit underwriting and mortgage underwriting, are, in descending order, FIS, Fiserv, D+H, EllieMae and Isgn.
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