- 36% of credit managers looking to adopt alternative data in addition to bureau data for better underwriting.
- 50% of credit managers surveyed have accelerated the use of digital tools for customer acquisition.
Equifax Inc. (NYSE:EFX), a data, analytics, and technology company, and PwC India collaborated to launch a first-of-its-kind report on the retail lending landscape in India. The first edition of the report highlighted the impact of COVID-19 and resulting disruption on sourcing and delinquency trends by loan type, lender type, and geography.
Sreedhar Vegesna, Partner and Financial Services Leader, PwC India, said, “The Indian Retail Industry, with its technology-driven differentiation, is evolving at a dynamic pace. However, lenders are facing unprecedented challenges across both sourcing and collections owing to the COVID-19 pandemic. PwC has entered into a unique partnership with Equifax to present key sector insights and strategic inputs to lenders through its report in the Retail Lending landscape. This is a first in a series of publications which aims to empower industry players to take best-fit measures for building a robust lending portfolio and ensuring business growth.”
On the occasion of the launch of the report, Asim Parashar, Partner Financial Services, PwC said, “With the first edition of the Report on the Indian Retail Lending landscape, PwC and Equifax kick-start a unique series of publications that uncover retail lending trends across multiple lenses including geographies, sectors, and products. This report presents an opportunity for readers to revisit the key learnings from the brief sector revival witnessed as the first COVID wave subsided and leverage the same to grapple industry challenges. Currently, industry leaders have chosen product, service, and distribution channel innovation enabled by accelerated digital adoption as the preferred business growth strategy. In the future editions, PwC and Equifax will aim to explore the key strategic shifts in the wake of the second COVID wave and the industry landscape thereafter.”
Key report highlights include:
- The demand for high ticket-sized loans decreased significantly post-pandemic, with large ticket-sized loans (>INR 75 lacs) showing sharpest decline of 80%
- The top five states (Maharashtra, Uttar Pradesh, Tamil Nadu, Andhra Pradesh, and Karnataka) alone contributed to almost 50% of 90+dpd delinquent accounts
- 73% of credit managers in the PwC / Equifax survey said they are exploring change in lending strategy for their unsecured loan portfolio
- Proactive collection strategy followed by Enriching contactability of borrowers were the top two measures highlighted by credit managers to manage emerging risks