Equifax

Equifax benefits from multiple reinforcing moats. Efficient scale: the U.S. consumer credit ecosystem is an oligopoly of three nationwide bureaus embedded into thousands of lender decision flows, reseller platforms, and regulatory frameworks. Switching at scale is risky and operationally costly, which preserves share.

Network data assets: The Work Number is a unique, permissioned payroll data network with 188 million active and 734 million total employment records from 4.2 million employers as of December 31, 2024, enabling instant verifications for lending, hiring, and government benefits.

These data are hard to replicate, and every new employer or integration increases its value. Intangibles and process integration: Equifax’s cloud‑native platforms and analytic scores are embedded in customer underwriting and fraud workflows.

Risks: regulatory changes can reshape what data are permissible, and FHFA’s evolving approach to mortgage score models and reporting requirements can alter mix and pricing power; FICO’s direct score distribution also pressures the mortgage profit pool. Net, we view the moat as strong but not invulnerable.