Credit bureaus turn to data analytics to provide holistic credit scores

With the growing demand for credit from new-to-credit (NTC) customers, credit bureaus are increasingly focusing on custom data analytics and alternative data partnerships with fintech companies. The NTC customers entering the formal credit system broadly comprise two groups — the young, digitally native segment and the unorganised segment, including micro, small and medium enterprises (MSMEs), which is moving away from the informal credit sector.

Growth of NTC customers

Credit information companies (CICs) are only authorised to collect credit data from banks in order to form the customer’s credit score. But the lack of credit history of the NTC segment makes it difficult