Credit Adviser

Credit Adviser

What are the Key Digital Payment Trends in India ?

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In the Indian payment eco-system, consumer behavior is being shaped by government policies and regulatory changes, tech changes and changing business models, all of which are reshaping the competitive landscape. JAM – Jan Dhan, Aadhar, Mobile. For the first time a financial inclusion program is talking about credit and insurance compulsorily. Saving Account is merely a way to reach the customer. This is also a sign of convergence.

P2P payment draft guidelines show the regulator’s willingness to reduce uncertainty. Both government and regulator have realized that driving competition is the key to achieve mass inclusion and less cash. Limited number of players cannot deliver on such a huge untapped opportunity across the BFSI segment.

Changing business model and competitive landscape

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Top Credit Questions: How Many Credit Cards is Too Many?

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As we all know there are many credit card options available in the market which offers great benefits and card offers. It is really hard to turn down the opportunity when an executive calls with a fresh credit card option with great offers and benefits and you also think how hard can it be? To maintain all your credit cards. But did you ever gave a thought on how many cards can you actually manage to achieve a great score? Or too many cards are bad for your credit health?

The answer to this is no number is right. You can use multiple cards and maintain a good score and also use one card and see your credit score go for a toss. It’s not the number of credit cards you hold but it’s how you use them. If we determine the possibility for a great cibil score two credit cards would be enough in which you won’t be spending much and also will have room to pay your monthly dues on time. If a person wants to go for multiple credit cards, they definitely can but that depends from

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Transerv – Multi-Mode Digital Payment Platform

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In the aftermath of the Demonetisation in India, the payment platform is undergoing a lot of changes. The challenge is that payment business is not a delight from a customer’s perspective. Payment is no longer about isolated products but an integrated experience as offered by Mumbai based Transerv.

Different consumer groups could pick and choose products of their choice available over multiple channels. For example

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Why Consumers Spend More in Cashless Transactions ?

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consumer-spending-indiaAcademic research indicates that digital mediums (credit/debit cards, digital wallets, etc.,) do not have cash outflow vividness, and hence reduce the pain of payment during a transaction in comparison to cash. As pain of payment reduces, spending propensity increases. Also, when using these mediums, people are more likely to underestimate or forget the amount spent on recent purchases; the lack of saliency for these mediums leads buyers to believe that they have more liquidity than they actually do, and this increases the purchasing probability of additional products (even non-essential ones).

Research also indicates that

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Demonetisation – Government of India’s Measures to Promote Cashless Transactions

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government-cashless-transactions The central Government of India has announced a slew of measures for systemic adoption of digital / plastic currency. The benefits accorded to digital transactions and benefits perceived by the government are as follows,

What Should be your Ideal Credit Utilization Ratio ?

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india-credit-utilization-rateCredit Cards are basically instruments introduced to extend per-approved credit line for your spend. While using them one has to be careful about Credit Utilization Ratio and impact on Credit Score. Most of our readers posed me a question on how much Credit can one use on the per-approved credit line of Cards, Personal Loans, etc without affecting one’s credit scores.

Credit Utilization Ratio is the percentage of available credit limit that one is utilizing. For example on a Card with

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