credit-cards-india

The Business of Credit Card in India Today – Part 1

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The credit card base has grown at a 18% CAGR during FY14-FY18, the current credit card base is only 45mn – this compares to 210mn customers with a 700+ CIBIL score (Super-Prime, Prime Plus and Prime), implying a 20% penetration and massive headroom for growth while staying on the same risk curve.

2 Big Credit Card Business Models in India The primary business model is centered on internal-to-bank customers (in practice at larger banks) while a secondary business model is emerging around new-to-bank customers (in practice at mid-sized banks). Large banks with a sizeable customer franchise grow their credit card portfolio purely as a cross-sell offering to their

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How BankBazaar and Wishfin are Transforming Lending / Financial Savings / Insurance for Gen Next?

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Smartphone penetration, availability of cheaper 3G/4G Data Plans along with idiosyncratic events like demonetization offered have transformed how gen next India financially transacts leading to higher traction on Platforms such as BankBazaar and Wishfin. They are an intermediary between the end consumer (who wishes to purchase a product, physical or financial) and financiers (banks, insurance, AMCs).

Digital platform penetration for sourcing loans and cards is expected to grow in the next 10 years to 60% from 15%. The number of visits to bankbazaar.com grew from 3 mn visits a month to 40 mn visits in a span of three years so is the exponential rise in traffic to Wishfin. Both have a strong online market presence and work with all the leading financial institutions in India.

The typical customer that visits

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Axis Bank Renewed Push on Payments / Credit Cards Business

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Axis Bank has been undergoing a structural shift for sometime. It got a shot in the arm with HDFC Group veteran Amitabh Choudhary joining as the CEO of the Bank. Within retail, there has been a gradual increase in the share of high yielding retail products like credit cards and personal loans.

Payments business plays four important roles in a bank’s strategy (1) acts as the face of the franchise, (2) increases customer engagement, (3) drives profitability and (4) drives partnerships. Retail electronic payments in India are growing at a tremendous pace which

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Indian Retail Loan Accounts Hit 100 Mn – CIBIL

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A recently report by CIBIL provides keen insights into the current state of the consumer loan growth business. Given their access to all market participants (banks and NBFCs). We see this product as well as their ‘MSME pulse’ as
one of the most important reports to understand these businesses.

Key takeaways from the recently published CIBIL report on consumer lending:
(1) Retail loans grew 27% yoy led by 26% growth in live accounts touching 100 million accounts. The flattish average ticket size is attributed to a change in the loan mix towards short duration consumer loans like credit cards, personal loans and consumer durable loans. (2) Average retail

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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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Evolution of Cashless Society in India

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As experience suggests, it is quite possible to live without cash. However, it is restricted currently to urban markets while in rural India, there has not been much progress to make the transition easier. One of the biggest learning experiments is the discounting methodology adopted by various companies as a tool to change payment behavior of individuals. Studies have shown that this can be successful if implemented across long periods of time.

Digital is showing positive impact on deposits through better payment platforms as well as lending. For example, aggregator models operating in India (Uber, Ola, Urban Clap etc.) have led to the emergence of a new credit class of 4.5-5.0 mn people. This is because banks now have information records of incomes of these people, and can better assess their credit worthiness. Mechanisms which have established key use cases have succeeded. Paytm , for instance,

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