This study on credit decision making and alternative data usage reveals interesting insights about the consumer credit landscape in India.
While the pandemic created financial woes for several economies, it also created opportunities to With the financial woes increasing post pandemic and people turning to credit cards and loans to meet the needs, lending institutions have increased responsibility of making accurate credit decisions. As the consumers are expecting lenders to make loan applications digital, fast, and easy and Asia-Pacific (APAC) lenders are striving to capitalise on the current opportunity, the use of alternative data and emerging technology is leading the way towards better credit decision making.
The pandemic has accelerated the need for the financial services sector to respond quicker to consumer needs as well as expand access to financing. This puts a greater responsibility on lending institutions to make accurate credit decisions.
To explore this topic further, Experian commissioned Forrester Consulting to assess the current risk and fraud decision across the three major economies of APAC: Australia, India, and Indonesia. Forrester surveyed 164 banking, fintech and non-banking lending decision makers across these nations.
According to the study, lenders have the opportunity to leverage a wider range of technologies and data sources to advance organisations’ current credit risk and fraud management capabilities. These investments will ultimately enable lenders to drive higher customer acquisition and provide a better overall digital experience for customers.
The study highlighted following key areas: