Indian banks are now concerned about customer experience because more than one in every three applications for credit card is getting accepted. CIBIL has found that the banking systems are getting more than 14 million unsecured loan applications each month and 40 percent of these applications are of new customers.
More and more people are gaining access to credit but experience is not equal everywhere, most of the banks have taken step to make their processes run faster. In the first quarter of 2014-15, only 14 percent of the credit cards were being approved in a day but in the end of the fourth quarter of 2016-17, the figure rose to 37%.
CIBIL has found that 63 percent of the cards yet take more than two days for approval. Banks and Fintech companies can use this opportunity to work in team to improve the customer experience; this task would involve figuring out the points where people struggle in getting an unsecured credit.
Yet, about 62 percent applications take more than three days for approval.
CIBIL suggests that eradicating asymmetry in information could allow credit to be cheaper and approval to be faster.Lenders should focus on how they can make their decisions faster and learn to say no.
India is in the middle of a payment revolution, it is like a battle arena where companies from all over the world are coming and fighting for their name. But only being concerned about increasing loans and credit all needed? What about the experience of those who are taking the loan? It’s going to be tough to find banks that have even a 30 percent retention rate for borrowers.
Being one of the biggest credit information bureaus in India, CIBIL is working to find new tactics so that Financial technology firms can make faster and better decision, and especially for those borrowers who are new to credit with no formal credit history.
CIBIL is also talking to Telecom Regulatory Authority of India (TRAI) for access to data on prepaid recharges, and other agencies for gaining access to information about small and medium enterprises and bill payment data on utilities.
CIBIL has not got access to data from TRAI yet but nor they have declined the request. CIBIL proposed gaining access to data for approving loans and not decline them. It is also going to Ministry of Corporate Affairs Data for private entities.
Even CIBIL was not perfect in the starting and all the bureaus were struggling to keep their data updated.
Till date, CIBIL makes 60+ million corrections to its database every day, and has initiated following up with customers on their pending loans when banks don’t update the data in their core banking systems.