With its MFI credit information bureau getting ready for launch in the first quarter of 2016-17, the Credit Information Bureau (India) Ltd (CIBIL) is looking at possibilities to bring in more credit behaviour data by taking information from the telecom and utility service providers.
The trends are in such a way that even the social media behaviour of the customer could be used to analyse the credit behaviour, used by the banks, said senior officials from CIBIL.
Speaking to reporters on the sidelines of the Sixth Annual Credit Information Conference in Chennai, presented by CIBIL and TransUnion, M V Nair, chairman of CIBIL, said, "We are looking at launching the MFI Bureau in the next quarter."
The bureau is expected to help the Micro Finance Institutions (MFIs) to offer credit faster and better based on the credit reports and scores of CIBIL. This would also increase CIBIL's database, adding more customers of MFIs to it.
The way forward could be getting credit behaviour of the customer from their payments to the telecom service providers, as a large number of population in the country has mobile phones, and payment to the utilities such as the electricity board, said Satish Pillai, managing director and CEO of CIBIL.
He added that a committee set up by Reserve Bank of India (RBI) to look into the alternate data available from the telecom companies and utilities has submitted its report and is under the consideration of the banking regulator now.
There are also possibilities of analysing customer behavior patterns of new customers if they have presence in social media, they added.
The company said that the way forward is to support financial inclusion and making customers aware of the credit scoring and its importance so that there would be credit discipline.
The credit story of the retail customers, especially in the credit card segment, has been better in the last two to three years and the non performing assets (NPAs) in some of the credit card segment is in a historical low, they said. This, along with a segment growth of 30 per cent offers good opportunity for credit cards at present.
The company has also launched a new product, CIBIL iScan, to help the banks to reduce the risk in current account business. The product, leveraging the repository of Commercial Bureau information to provide CIBIL members with precise credit history details of their current account applicants.
The RBI has laid down mandatory processes for curbing losses to the industry due to diversion of fund and as per the mandate, banks are required to obtain a No Objection Certificate from the financial institutions extending credit facilities to the customer before opening of a current account.