4 Credit Risk Trends That Will Shape 2025

To begin, I wanted to share what I believe could have a major impact on credit risk in the new year. Throughout the last few years, we’ve seen the effect that things like rising tension and even war can have on the world. A recent example is The Red Sea Shipping Crisis. Middle Eastern conflict has meant that, in March 2024, shipping traffic through the Suez Canal and Bab El-Mandeb Strait dropped by half. To keep up with demand, an alternative route through the Cape of Good Hope saw a 100% increase in navigation. You can imagine the type of bottleneck situation something like that would cause.

It’s just one example, but it points to a larger trend that could follow us into 2025. When your supply chain relies on a particular area – or even a single supplier, for example – it can be easily toppled when something goes wrong. Your best bet to protect your business from the risk of supply chain failure is to keep your supply chain diverse and flexible. You should also never be too lax when it comes to things like KYC checks. Things can change quickly – you should do everything you can to be the first to know if a supplier poses a risk to your business.

Now, let’s get into some of the trends the experts at Creditsafe think you should keep your eye on in the new year.

As we head into 2025, businesses are striving to automate and accelerate their credit decision processes. The demand for seamless online credit applications and direct integrations into ERP and CRM systems is surging. These integrations allow companies to evaluate credit risk in real time, enabling faster onboarding of customers and reducing manual effort. AI-driven credit scoring models play a critical role here, processing vast amounts of data instantly to provide actionable insights that align with a company's risk tolerance and financial goals.

The global nature of credit risk is amplifying the need for innovation. Geopolitical instability—marked by ongoing conflicts, trade wars, and tariff uncertainties—is creating new layers of risk. Companies must navigate disruptions in global supply chains, fluctuating commodity prices, and sudden regulatory changes, which can impact the creditworthiness of international partners. AI-driven models are uniquely positioned to evaluate these interconnected risks, providing predictive insights that are vital in a volatile world.

Looking ahead, credit risk management will demand a blend of global data, AI-powered analytics, and strategic adaptability. While the commoditization of traditional credit data will continue to drive down costs, businesses that embrace alternative data, automation, and AI-driven integration with their operational systems will not only gain a competitive edge but also navigate a world where economic and geopolitical risks are more interconnected and immediate than ever before.

-- Mark Laube, Product Director, Creditsafe

Automation is an increasingly important part of many companies’ long-term plans. Our research study AI’s Role in Buisness Risk found that 37% of finance managers believe a lack of automation in their finance function creates more risk for their business. We agree – automation is a way to validate suppliers, onboard customers and continuously monitor your business’ credit risk. Removing the potential for human error means you can feel more secure in the business decisions you make.

And that’s not the only benefit to automation. In our research study The Sales vs. Credit Control Battle, 58% of respondents said they spend between one and four hours each day on manual sales data entry tasks. Just imagine if that time was cut down to seconds – I'm sure you could think of more than a few ways your sales teams could spend an extra 4 hours a day!

There is a lot of uncertainty on a global level as so many changes are taking place with political unrest and how that affects currency and stability risk. Companies that are managing credit risk on a global level need to be very attune to socio-political issues that may affect the ability to get paid.  In the North America market, there is a quite a bit of concern around the lack of transparency on so many companies that are owned by Private Equity firms. There is very little financial information available and managing credit will rely more on historical payment data and crowd sourcing information in the absence of financial statements.  

-- Yesinne Alvarez, Partnerships, Alliances & Data, Creditsafe