73% of credit managers likely to change lending strategies for unsecured portfolios after PwC pandemic: Equifax survey and report

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Mumbai, Maharashtra, India:

  • 36% of credit managers are looking to adopt alternative data in addition to bureaus data for better underwriting.
  • 50% of credit managers surveyed have accelerated the use of digital tools for customer acquisition.

Equifax Inc. (NYSE: EFX), a data, analytics and technology company, and PwC India have collaborated to launch a one-of-a-kind report on the retail lending landscape in India. The first edition of the report highlighted the impact of COVID-19 and the resulting disruption on sourcing and delinquency trends by loan type, lender type, and geography.

At the launch of the report, Shri Rajkiran Rai G, Managing Director and CEO of Union Bank of India, the leading public sector bank, said: “As practitioners, the financial services industry is eager to understand the trends. macro-loans to adapt its strategy and risk policies as a result. This has become even more important due to the impacts of COVID in 2020. PwC and Equifax have brought smart data and analysis as well as industry insight in this thought leadership report covering lending industry trends. by retail.

To read the report, click on: https://www.pwc.in/assets/pdfs/consulting/financial-services/mapping-the-indian-retail-lending-landscape.pdf or https://www.equifax.co.in/business

Sreedhar Vegesna, Partner and Leader in Financial Services, PwC India, said: “India’s retail industry, with its technology-driven differentiation, is evolving at a dynamic pace. However, lenders face unprecedented procurement and collection challenges due to the COVID-19 pandemic. PwC has entered into a unique partnership with Equifax to present key industry insights and strategic contributions to lenders through its Retail Lending Landscape Report. This is the first in a series of publications aimed at empowering industry players to take the best steps to build a strong loan portfolio and grow the business. “

At the launch of the report, Asim Parashar, Partner Financial Services, PwC said: “With the first edition of the India Personal Lending Landscape Report, PwC and Equifax are launching a unique series of publications that uncover lending to individuals. individuals. trends across multiple lenses, including geographies, industries, and products. This report offers readers the opportunity to revisit key lessons learned from the brief industry recovery seen as the first wave of COVID subsided, and to build on them to address industry challenges. Currently, industry leaders have chosen the innovation in products, services and distribution channels made possible by the accelerated adoption of digital as their preferred business growth strategy. In future editions, PwC and Equifax will aim to explore key strategic changes in the wake of the second wave of COVID and the industry landscape afterward. “

KM Nanaiah, Managing Director, Equifax Credit Information Services Pvt. Ltd. and Country Leader, Equifax India and MEA, said: “Over the years, Equifax, as the country’s leading credit bureau, has worked with the Indian financial services industry to help maintain high levels of underwriting standards. . Now, through its partnership with PwC, Equifax is releasing a report to provide insight into India’s retail lending industry trends – from disbursements to delinquencies, fastest growing states to major loan categories, and the impact of COVID-19 of it. This report will act as a beacon, helping the financial services industry and policymakers navigate the peaks and troughs of the lending cycle, further promoting responsible lending in these times.

The main highlights of the report include:

  • The demand for large loans declined dramatically after the pandemic, with large loans (> INR 75) showing the largest drop of 80%.
  • The top five states (Maharashtra, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Karnataka) alone contributed nearly 50% of overdue accounts over 90 dpd
  • 73% of credit managers in the PwC / Equifax survey said they are considering a change in lending strategy for their unsecured loan portfolio
  • A proactive collection strategy followed by better contactability of borrowers were the two main measures put forward by credit managers to manage emerging risks.

ABOUT PwC

At PwC, our goal is to build trust in society and solve important issues. We are a network of companies in 155 countries with more than 284,000 people who are committed to providing quality insurance, advisory and tax services. Learn more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and / or one or more of its member firms, each a separate legal entity. Please watch www.pwc.com/structure for more details.

ABOUT EQUIFAX INC.

At Equifax (NYSE: EFX), we believe knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employers and government agencies make critical decisions with more confidence. . Our unique blend of differentiated data, analytics, and cloud technologies generate insights that are useful for making decisions and getting people moving. Based in Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia-Pacific region. For more information visit Equifax.com. For media inquiries contact [email protected]

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