Bhushan, Aniket
From credit history to credit potential: Alternative data and algorithmic credit scoring in new-to-credit lending in India - Economic & Political Weekly - 61(22), May 30, 2026: p.21-23
India’s credit system remains reliant on bureau-based credit histories despite rapid digitisation. This article examines the role of alternative data, digital payments, transaction flows, utility records, and behavioural indicators—in assessing creditworthiness of new-to-credit individuals and enterprises. Using Global Findex Database 2025, it highlights gaps between financial participation and credit access. It argues that alternative data can enhance inclusion only with strong regulatory safeguards addressing bias, opacity, and risk, marking a shift from credit history to credit potential as an institutional transformation.- Reproduced
https://www.epw.in/journal/2026/22/commentary/credit-history-credit-potential.html
From credit history to credit potential: Alternative data and algorithmic credit scoring in new-to-credit lending in India - Economic & Political Weekly - 61(22), May 30, 2026: p.21-23
India’s credit system remains reliant on bureau-based credit histories despite rapid digitisation. This article examines the role of alternative data, digital payments, transaction flows, utility records, and behavioural indicators—in assessing creditworthiness of new-to-credit individuals and enterprises. Using Global Findex Database 2025, it highlights gaps between financial participation and credit access. It argues that alternative data can enhance inclusion only with strong regulatory safeguards addressing bias, opacity, and risk, marking a shift from credit history to credit potential as an institutional transformation.- Reproduced
https://www.epw.in/journal/2026/22/commentary/credit-history-credit-potential.html