India’s fintech revolution must move beyond payments. The next phase lies in using digital financial trails to expand responsible credit access
UPI’s vast transaction volumes are creating a rich digital record of economic activity that could help lenders better understand small businesses
For businesses without audited accounts or substantial collateral, transaction histories can reveal turnover, seasonality and cash-flow patterns
The Unified Lending Interface could enable consent-based sharing of verified financial and non-financial data, strengthening credit assessment beyond bureau scores
UPI receipts show financial flows, not necessarily income or profit. Alternative data must supplement sound credit appraisal, rather than replace it
Data-driven lending will require consent, privacy, interoperability and safeguards against opaque or discriminatory algorithms to ensure technology broadens financial inclusion