You’ve heard of S&P Global, right? Yeah, that financial data and analytics company that’s been around since 1860.
But where are they headed in the next couple years? That’s what we’ll dive into today.
S&P Global has grown into a massive player in financial services over the past century and a half.
Lately they’ve been expanding into new areas like ESG ratings and machine learning.
We’ll look at what’s on tap for this venerable firm in 2024 and beyond.
From potential M&A to increased automation, there are some interesting developments in S&P’s future.
Stick around as we glimpse what’s next for this financial data giant.
S&P Global: A Brief History and Overview
A legacy of financial data
S&P Global has been providing independent data and insights for over 150 years.
Founded in 1860, Standard & Poor’s started out producing lists of stocks and bonds.
Over time, they evolved into a leading provider of independent credit ratings, benchmarks, analytics, and data.
In 2016, S&P Global was formed from the merger of S&P Dow Jones Indices and McGraw Hill Financial.
A trusted source for the global financial community
Today, S&P Global is a trusted advisor and partner to the global financial community.
Their data and insights cover numerous asset classes across markets worldwide.
Investors, corporations, and governments rely on S&P Global for transparent and independent ratings, benchmarks, analytics, and data to make informed business and financial decisions.
Diverse products and services
S&P Global offers an array of products and services for institutional and retail investors.
These include credit ratings on governments, corporates and structured finance; equity and fixed income indices; multi-asset class data solutions; and environmental, social and governance (ESG) analytics.
They provide research and insights into factors driving global markets and economies.
An innovative, growth-focused company
While staying true to their legacy, S&P Global continues to innovate.
They are investing heavily in new technologies like artificial intelligence and machine learning to enhance their analytics and data offerings.
At the same time, they are expanding into new asset classes and developing multi-asset class solutions for investors.
With a constant focus on growth, S&P Global is well positioned to keep empowering the global financial community with essential intelligence for years to come.
Key Business Segments and Recent Performance
S&P Global has three main business segments: S&P Global Ratings, S&P Global Market Intelligence, and S&P Global Platts.
Each segment has been performing well over the past few years.
S&P Global Ratings
This division issues credit ratings and research on governments, public finance, structured finance, and corporates.
Despite some volatility due to the pandemic, S&P Global Ratings grew revenue by 7% in 2021.
The company expects mid-single-digit growth for this segment in 2022 as global debt issuance continues to increase.
S&P Global Market Intelligence
This segment provides data, insights, and analytics to financial companies, corporations, and governments.
Revenue has grown by 9% annually over the past three years, driven by strong demand for data and insights around ESG, climate change, and emerging technologies.
S&P Global expects Market Intelligence to continue expanding at a fast pace as companies seek data to gain a competitive edge.
S&P Global Platts
Platts provides information and benchmarks for commodities and energy markets.
Although revenue declined slightly in 2020 due to low oil prices, the segment rebounded with 8% growth in 2021.
As the world transitions to renewable energy and transportation electrification accelerates, Platts is well positioned to provide data and insights into new commodities and energy sources.
With leading positions across high-growth markets, S&P Global seems poised for continued success over the next few years.
By leveraging its data and analytics capabilities into fast-expanding areas like ESG and renewable energy, this financial giant could see its best days still ahead.
What’s Driving Growth and Expansion Plans for S&P Global
S&P Global is poised for significant growth over the next few years thanks to several factors.
First, increasing demand for data and insights in today’s highly interconnected global economy has fueled the need for S&P Global’s products and services.
Companies want deeper insights into markets, competitors and risks to gain a competitive edge.
Governments and policymakers also rely on S&P Global’s data and research to craft impactful policies and regulations.
For example, S&P Global Market Intelligence’s platform provides real-time data on financial markets, companies and industries to support investment and policy decisions.
Continued innovation
To meet these growing needs, S&P Global continues enhancing its platforms and services.
Recent innovations include advanced analytics, artificial intelligence and machine learning to uncover deeper insights from data.
For example, S&P Global Ratings 360 uses machine learning to gain a more forward-looking view of issuer credit risk.
S&P Global has also expanded into new high-growth areas like ESG (environmental, social and governance) investing and green energy.
Its ESG scores and green evaluations help investors integrate ESG factors into their decisions.
Global expansion
Finally, S&P Global sees opportunities to expand its global presence, especially in emerging markets.
It aims to gain more customers in Asia, Latin America, the Middle East and Africa.
For example, S&P Global recently acquired the ESG ratings business of RobecoSAM, which has a strong presence in Europe and Asia.
Through continued innovation, expansion into high-growth sectors and extending its global reach, S&P Global is poised for steady growth over the next five years and beyond.
By providing the essential data, insights and tools needed to navigate an increasingly complex world, S&P Global remains an indispensable partner for businesses and governments worldwide.
How S&P Global Is Leveraging Technology and Innovation
To stay ahead of the curve, S&P Global is focused on developing and implementing new technologies across its products and services.
Data and Analytics
S&P Global has access to enormous amounts of financial and business data which fuels its analytics and benchmarking products.
The company is investing heavily in machine learning and AI to gain valuable insights from huge datasets.
By applying advanced analytics, S&P Global can uncover patterns and connections that would be nearly impossible for humans to detect.
These technologies will allow S&P Global to provide increasingly sophisticated ratings, benchmarks, and analytics to its clients.
The Cloud
Like many companies, S&P Global is migrating more of its infrastructure and applications to the public cloud.
The cloud offers greater scalability, security, and cost efficiency versus on-premise data centers.
S&P Global is working with cloud providers like Amazon Web Services and Google Cloud to optimize its cloud usage and take advantage of emerging technologies like serverless computing.
The cloud also makes it easier for S&P Global to integrate new acquisitions and spin up resources for special projects.
User Experience
S&P Global aims to deliver an intuitive user experience across all of its platforms and products.
The company is focused on simplifying its interfaces and making tools more visually appealing and easy to navigate.
Things like personalized dashboards, interactive data visualizations, and mobile apps are helping S&P Global better engage its clients and meet the needs of today’s users.
The company is also using feedback and analytics to gain customer insights and continuously improve the user experience.
With data, technology, and innovation on its side, S&P Global is well positioned to enhance its offerings, gain valuable insights, improve efficiencies, and meet the emerging needs of its clients.
By leveraging new technologies, this financial data powerhouse can continue its growth trajectory and solidify its role as an essential partner for global capital and commodity markets.
What the Future Holds for S&P Global in 2024 and Beyond
Expanding Data and Analytics Offerings
Over the next few years, S&P Global will likely continue expanding their data and analytics products to provide more value to clients.
They may focus on leveraging artificial intelligence and machine learning to gain deeper insights from their massive data stores.
New tools could help investors analyze risks, spot emerging trends, and make better decisions.
S&P Global may also continue making strategic acquisitions to strengthen their analytics capabilities, similar to their recent purchase of Kensho Technologies.
By 2024, S&P Global could become a leader in AI-powered analytics for the financial sector.
Their data and analytics products would give them a competitive edge and new revenue sources to drive growth.
Transitioning to Cloud and Digital Services
To keep up with changes in technology and client needs, S&P Global will probably accelerate their transition to cloud-based services and digital platforms over the next few years.
Migrating more data and applications to the cloud could help them scale faster, reduce costs, and launch new products quickly.
S&P Global may also redesign their platforms to be “digital-first.” This could include personalized dashboards, mobile apps, and simple but powerful tools for searching and analyzing data.
By improving the digital experience, S&P Global can make their content and insights even more useful and accessible to clients.
Focus on ESG and Sustainable Finance
Another likely area of focus for S&P Global in the coming years is sustainable finance and ESG (environmental, social and governance) investing.
There is growing demand from investors and companies for ESG data, ratings, and analytics to help them assess risks and opportunities related to sustainability.
S&P Global is well positioned to serve this market.
They may expand their suite of ESG products, create more sustainability-focused indices, and incorporate ESG factors into more of their mainstream financial data and benchmarks.
By establishing themselves as a leader in ESG and sustainable finance, S&P Global could tap into a fast-growing new market.
In summary, if S&P Global continues enhancing their data and analytics, transitioning to digital services, and prioritizing ESG and sustainable finance, they should be in a strong position in 2024 and for years to come.
Of course, unforeseen events could also impact their future direction.
But by focusing on these key areas of growth, S&P Global can build on their success and help shape the future of finance.
