Fintech firms in a spot after RBI restricts access to credit data

Business of credit information bureaus seen coming under threat

With the Reserve Bank of India (RBI) restricting fintech firms’ access to consumer credit information, the business model of start-ups working on lending and consumer insights is being questioned.

Industry experts say this step could negatively affect the business of credit information bureaus that have seen rising demand from fintechs in recent years. The RBI last week asked banks and non-banking financial companies (NBFCs) to stop providing unregulated entities access to consumer information held by credit bureaus. 

Currently, the Credit Information Companies (Regulation) Act, 2005, (CICRA) defines rules relating to use and access to consumer data from credit bureaus such as TransUnion