With r͏eta͏͏il NPAs͏͏͏ ͏hi͏tt͏in͏g a͏ ͏multi-ye͏a͏r l͏ow ͏of ͏2.8% i͏n 2͏02͏4,͏ fina͏ncia͏l i͏ns͏titutio͏ns sa͏w͏͏ 51% m͏or͏e con͏sum͏ers m͏on͏ito͏ri͏͏ng͏ their CIBIL͏ sco͏r͏e, and ban͏ks lowered t͏ur͏naround times by 5͏X via͏ a͏utoma͏t͏ed s͏ta͏te͏ment͏ analysis͏. Ab͏͏o͏ut 119͏ milli͏on ͏Indians ͏re͏gu͏lar͏ly t͏͏rack͏ed scores͏͏,͏ markin͏͏g ͏a͏͏ 51%͏ rise in FY 2023–2͏4.͏͏ In this scenario, c͏ombining credit bureau data ͏with de͏ta͏i͏le͏d ba͏nk͏ […]
Indi͏a is home t͏o over 14 million registered͏ GST taxpayers as of 2024, refl͏ecting the v͏ast ͏scope of businesse͏s c͏om͏plyin͏g with indirect ta͏x la͏ws. Meanwhil͏e, bank acc͏ounts in India have crossed ͏65 crore, s͏howing͏ the scale of formal fi͏na͏ncial transactio͏ns. For b͏usin͏ess͏es, two critical f͏inancial documents dominate de͏cis͏i͏on-making: GST͏ ret͏urns and bank ͏statements. GST͏ re͏turn͏s […]
Why is alternative credit scoring gaining momentum in India? Before exploring the reasons, let’s take a quick look at the context. Lenders disbursed over 383 million loans in FY 23-24 alone. Even though the financial market has shown this phenomenal growth, more than 160 million Indians remain “credit invisible”. In fact, 22% of Indian adults […]
Although technological advancements have revolutionised and streamlined bank statement verification, a few problems persist – fake or tampered bank statements. Manipulating or creating fake financial documents, including bank statements, has become easier than ever, owing to sophisticated editing tools like Adobe Acrobat. Today, around 5% of all financial documents submitted through online channels are tampered […]
The l͏ending͏ industry has changed significantly in recent years due to the ris͏e o͏f ͏di͏gital͏ paym͏ents an͏d͏ online͏ transaction͏s. A͏s m͏ore b͏orrowe͏rs move to digi͏tal p͏latforms, lending institutions face cha͏lleng͏es wi͏th tra͏ditio͏nal reconcil͏iation methods,͏ which are͏ struggling to keep up with the rapid flow of financial data. Borro͏wers͏ ͏expect loan dec͏isions as fast as possible. […]
Over 110 million Indians checked their CIBIL report in 2024. TransUnion stated in their report that women-led monitoring rose by 42%, and 15 million assessed their Credit Information Report for the first time in FY24. This shows India’s excellent growth in financial awareness and credit monitoring. On the other hand, banks and NFBCS are seeing […]
According to the president of ICAI, Mr. Ranjeet Agarwal, India’s chartered accountants issue around 1.5 crore income tax filing certifications annually. Tax professionals spend 25 hours weekly on compliance and handle 400-500 complaints yearly, which underscores their crucial role in ensuring thorough compliance. However, the complexity of tax filing has surged due to rapid regulatory […]
A thorough evaluation of the applicant’s credit health is integral to the lending process. Lenders use multiple tools to assess an applicant’s creditworthiness, with bank statement analysis being one of the most crucial. While the Indian banking sector has seen a significant improvement in asset quality, with the gross non-performing asset (GNPA) ratio falling to […]
Credit scoring models are the backbone of the lending ecosystem, enabling lenders, including financial institutions, to evaluate the risk involved while approving loans for every applicant. Traditionally, statistical and linear programming models, often considered the gold standard of credit scoring, were extensively used by lenders worldwide. However, we can see the tides changing as sophisticated […]
The total value of loans in India increased by 11.5% in December ’24 compared to the same period in the previous year. Additionally, the loan growth rate in India remained steady at around 11.8% between 2012 and 2024, highlighting the increasing demand for credit within the Indian economy. Despite these positive trends, around 30-35% of […]
