Credit information company TransUnion Cibil today launched a new solution to help banks expand their consumer base.
The product, CreditVision, looks at the past credit behaviour of a consumer, predicts risks and helps banks to expand credit opportunities by studying his payment, exposure and spend behaviour.
"With the launch of this product, we reinstate our commitment in supporting our member institutions on driving profitable business growth and credit penetration by providing credit access to many more deserving consumers," managing director and CEO Satish Pillai said.
"These new age algorithms are a definite game changer for the credit industry which will enable phenomenal market expansion," he said.
These algorithms, based on the past 36 months of data, enable identification of comprehensive customer behaviour and enable banks to use these for making more precise lending decisions.
It could enable credit access to an incremental 15 lakh borrowers every year without compromising on risk, the company said.
"These borrowers could provide banks an incremental asset size of around Rs 68,858 crore, at a low delinquency rate," it said.
Pillai said the algorithms have identified another 20 lakh borrowers who currently have access to banking credit, but would be eligible for higher lines of credit or higher loan-to-value.
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