The Scale of the Challenge
According to IDFC FIRST Bank's MD & CEO Vaidyanathan, only around 272-280 million adults in India have a credit history. This leaves a vast majority underserved, despite their potential financial and business needs.
Why is This a Problem?
Without a credit history, individuals and small businesses struggle to access loans for homes, education, or expansion. This limits their ability to invest, grow, and contribute fully to the economy.
AI to the Rescue?
The good news is that Artificial Intelligence (AI) could offer a powerful solution. AI can analyze alternative data points to assess creditworthiness, opening doors for millions who are currently excluded.
Expanding Access to Credit
By leveraging AI, financial institutions can gain a more holistic understanding of potential borrowers. This can lead to greater financial inclusion and empower a larger segment of the Indian population.
