Experian has launched a Business Credit Report in India that will benefit sole proprietors and fintechs servicing these companies. The solution allows proprietors to check their credit report on the websites of B2B fintech players. It also enables fintechs to provide personalised financials solutions. The process to get a business credit report requires no documentation, thus removing friction and building a great customers experience.
Fintechs have played a significant role in financial inclusion by offering credit to proprietors. However, there have been two major roadblocks faced by fintechs when it comes to making the best lending decisions – cost to acquire new customers which has increased over the last few years, analysing credit information of sole proprietors can gain access to their report in real-time thus enabling fintech partners to provide faster and better access to credit. This report is a record of proprietor’s debt-related exposure and payments. It contains valuable information about the business including credit score, tradeline, repayment history, account classification, credit summaries, previous credit inquiries and much more.
In a statement, Neeraj Dhawan, Managing Director, Experian India said, “Recent years have seen numerous policies and regulations that are catalysts in making the MSME sector grow significantly. India has approximately 6.3 crore MSMEs and the sector grown by CAGR of 18.5% from 2019 to 2020. In FY21, the loan disbursals to MSMEs stood at Rs. 9.5 trillion, a 40% increase compared with Rs. 6.8 trillion increases in FY20. However, currently there is friction in the lending process – for proprietors in gaining access to information and for fintechs in using this information to provide personalized solutions. Considering the challenges faced by both proprietors and fintechs, our new solution aims to create an ecosystem that improves lending to proprietors and provide superior and more personalized offering to them.”
Fintechs can start providing the report in a matter of days since it does not require any separate technologies development and is easily accessible through Experian’s APIs. Additionally, the API configuration allow the partner organizations to design their own customers journey thus customising and enhancing the overall customer experience.