Our MD and CEO V Vaidyanathan spoke recently at the Transunion CIBIL 14th Annual Credit Information Conference 2024. He has explained how the new age digital ecosystems can be used as for effective risk management for agri, MSME and retail credit. He has described step-by-step the key processes used while giving a loan using the new digital ecosystems. This process two key capabilities:
To plug into all components of the new digital ecosystem such as UIDAI, NSDL, NPCI, CIBIL, Banking, Fraud management, India Stack, e-credit evaluation tools, e-cash flow analysis, e-mandate, e-agreement, e-collections, online monitoring,
Use latest technologies, including AI and ML to process this information and make meaningful decisions.
Thank you, participants for the Q&A in the end, it made the conversation more insightful. India has developed these digital controls and digital ecosystems even while personal credit (mortgage, vehicles, credit cards etc.) to GDP is still quite low at 19% to GDP, compared to personal credit to GDP % in more developed countries such as Canada (110%), UK 109%, Australia (100%), S Korea (85%), Singapore (69%), China (65%), United States (65%), Malaysia (65%) and so on.
Thus, as India progresses towards becoming a more developed country, personal credit is likely to come on stronger digital guardrails of identity, cash flow evaluation, online monitoring, and digital repayment. Further, many more new ecosystems will come alive soon. Digitisation of land records for example will be significant breakthroughs.
With best wishes,
Team IDFC FIRST Bank
