Equifax Analytics has joined forces with Dutch online payments processing firm PayU to increase credit access in India by assessing consumer transaction behaviours.
It is estimated that 75% of the total population in India have never taken a loan. Consumer loan makes up around 20% of the total new loan accounts opened.
The partnership aims to bring this population into credit fold.
Improving credit access in India:
Under the collaboration, the two companies will work to enable the financial institutions receive deeper insights about transactional behaviour of the consumers. It will target the consumers who are not part of credit bureau data.
This insight data can be utilised in the digital lending process.
Equifax India and MEA country leader KM Nanaiah said: “This would work on a consent model where applicants who are not present in the credit bureau data can allow lenders to look at other digital transactions and patterns.”
He added that the initiative will look to resolve the credit access issue for underserved customers.
PayU India MD Jitendra Gupta said: “Consumer credit market in India has a lot of scope for growth and this partnership will serve the untapped potential.
“This innovative product is aligned with our vision of supporting the credit ecosystem including banks, NBFCs, and Fin-techs in order to provide seamless credit access to millions of underserved customers.
“Furthermore, this provides further validation of our understanding of customer’s digital behaviour and how same can be leveraged to drive credit access to consumers.”