{"id":190,"date":"2023-02-10T13:28:56","date_gmt":"2023-02-10T13:28:56","guid":{"rendered":"http:\/\/geoiqfrontendblogsprodwordpress-env.eba-dpx723ys.ap-south-1.elasticbeanstalk.com\/index.php\/2023\/02\/10\/enabling-credit-risk-assessment-of-ntc-customers-for-navi\/"},"modified":"2025-01-15T14:28:46","modified_gmt":"2025-01-15T08:58:46","slug":"enabling-credit-risk-assessment-of-ntc-customers-for-navi","status":"publish","type":"post","link":"http:\/\/geoiq.ai\/blog\/enabling-credit-risk-assessment-of-ntc-customers-for-navi\/","title":{"rendered":"Enabling Credit Risk Assessment of New to Credit Customers For NAVI"},"content":{"rendered":"

Risk assessment and credit profiling for new to credit customers is tricky. <\/em>Along with it, there is great scope for improving the accuracy of risk prediction for credit-served customers too. For NAVI, we discovered location attributes that indicate the risk appetite of prospect users. Next, we augmented their user database with these location variables\/ attributes to predict risk better and help them identify new customers, which would otherwise not be considered for credit products. Here\u2019s how we did it.<\/em><\/em><\/p>\n

The lack of data for credit profiling NTC customers has led to a significant proportion of the adult Indian population being unserved or underserved regarding credit. A TransUnion report, \u201cEmpowering Credit Inclusion: A Deeper Perspective on Credit Underserved and Unserved Consumers\u201d, highlights that more than 160 million consumers had insufficient access to credit in India at the end of 2021. The report also highlights the percentage population that falls under credit served and underserved from a global perspective.<\/p>\n

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Percentage of population that is credit served, under-served, and unserved<\/figcaption><\/figure>\n

For the \u2018new to credit consumers\u2019, risk assessment is a challenging feat simply because of the absence of credit history or score. This becomes an impediment for such users to avail credit opportunities. Such users are traditionally termed as unscorable, and lenders face a \u201cchicken or egg\u201d conundrum of how to provide the first credit product without a credit history.<\/p>\n

\u201cAlthough India has made great strides in increasing levels of credit inclusion across the country in recent years, the current reality highlights the importance of incorporating enriched credit data into the lending ecosystem, so that fewer consumers find themselves as credit unserved. Once these consumers can be evaluated by financial institutions, lenders can better determine where there might be new opportunities for growth and how they can expand credit inclusion further,\u201d said Kumar, MD & CEO of TransUnion CIBIL.<\/p>\n

So how could these \u2018new to credit\u2019 consumers be evaluated better for risk and credit profile? That\u2019s where GeoIQ comes into the picture.<\/em><\/em><\/strong><\/strong><\/p>\n

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