Indian society has evolved from a savings-focused and debt-averse country to a more consumption-focused, leveraged economy. With the growth of India’s credit economy and rising number of consumers applying for credit each month, this market is paving way for some interesting trends in the credit card industry.
The industry has shown significant growth over the years and this trend is expected to continue propelled by rising urbanization, accelerated digitization and cashless spending. This transition can further be gauged how over the years we had seen our parents carrying hard cash for shopping, travel or dine outs but all one needs today is a credit card and we are all good. This move by society to a cashless payment has further led to rapid penetration of credit cards among the millennials.
The attitudinal shift and consumers’ embrace of the ubiquitous Credit Card has led to lending institutions recalibrating the card issuing and creditworthiness measures at their end. Today Financial Institutions are issuing new credit card basis your existing card statements.
To test this fact, Mr Jasprit applied for a new credit card and yes, the only document sought was his last month’s statement. Key differentiator here was that the card used by Jasprit was from another institution yet acceptable for evaluation.
At surface level, Jasprit’s statement gave basic details like his credit limit, due dates, payments etc. However, a deeper dive by Perfios Credit Card Analysis gave a whole new world of data to the credit decisioning team of the lender to decide in favour of Jasprit. Let us take a sneak peek as to how lenders are reaping benefits from Perfios Credit Card Analysis -
Just like Jasprit’s lender, many other Financial Institutions have started leveraging Perfios Credit Card Analysis and offering personalised cards thereby attracting new potential customers. While there are some who are still wondering if this transition to cashless spending is lasting or transient.
Here is a quick fact check that shall put all their doubts to rest. According to the latest data published by RBI, number of outstanding credit cards as of Sep'20 were 58.6 Million cards and the industry has expanded by an average of 20% in the last 3 years viz-a-viz an average of 15% in 10 years. Governments recent push to digital payment shall further add on this industry’s growth leading to a huge opportunity for lenders/FI’s to tap this potential through Perfios Credit Card Analysis.
To know more about Perfios Credit Card Analysis, click here.