Traditional credit scores require a loan history. These workers are paid and earn in cash, remaining invisible to old systems.
India's largest untapped lending market is not a new customer segment. There are 490 million workers who run kirana shops, drive trucks, supply factories, and build homes. They earn, spend, save, and repay, but they do it in cash.
They do not have any payslips, ITRs, or credit bureau records. For traditional lending, this is a dead end. Banks need three things to approve a loan: proof of income, proof of repayment history, and a credit score. These workers had none of the three.
For example, a construction worker who borrowed from a moneylender and repaid at 36% interest has no CIBIL score to show for it.
In 2021, the Account Aggregator framework went live. It allows users to share their financial data across institutions through a secure, standardized pipeline.
Earlier, getting a loan meant carrying bank statements, ID proofs, and income documents to a branch. Now, with one tap, a customer can share all their financial data directly with the lender.
→ A retailer's daily UPI collections became a readable signal. → Consistent utility payments over the years revealed creditworthiness. → Digital footprints started replacing paper trails
The IndiaAI Mission has now committed Rs 10,371 crore to AI infrastructure. Banks like HDFC Bank and Axis Bank are deploying AI-driven decisioning that goes beyond traditional bureau scores.
This created a commercial shift. The companies building data systems to assess these customers are sending them to the next large lending market.
The banks that figure out how to use this data will add crores of customers. The banks that crack this will not add customers in thousands. They will add them in crores.
The question for every bank and NBFC Solutions is simple:
→ Are you plugged into the account aggregator yet? → Are you partnering with fintechs that already read cash-flow data? → Is your underwriting model trained on UPI patterns or still waiting for CIBIL?
The data is already flowing. The only question is who captures it first. They will define the next era of lending in India.
The question for banks and NBFCs companies is simple: Are you still fighting for the same overserved customers? Or building systems to find the ones your competitors cannot see yet?
How is your organization thinking about alternative data for credit decisions?