Varun Bhalla, Country Manager, India
Current banking/lending landscape: • The landscape is changing very rapidly in India, and as innovation flourishes, the regulatory side is also evolving quickly to keep pace and guide these changes in the industry, balancing innovation with risk management and ensuring systematic risks are taking into consideration. • Credit demand in India continues to increase, thanks to upwardly mobile customers and pressure on income thanks to inflation. Lenders are becoming more prudent in evaluating these customers – there is a level of caution across the board, where they aren’t pulling back entirely but watching carefully for early signs of stress in credit portfolios. How can financial institutions support their customers? • Financial institutions and lenders should leverage Artificial Intelligence (AI) and analytics to use the massive amounts of data being generated in India’s digital ecosystem. This will enable hyper- personalization of financial products/solutions to reach all micro- segments within the population and help customers through this economic slowdown. • Financial inclusion is also critical, as you have a large portion of the population that remains underserved. By underwriting based on payment data, lenders can service those who would not qualify under traditional risk models and support growth in a more equitable way.
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