India for the World: New podcast by Mint and BCG kicks off, highlights credit bureaus' role in boosting financial access

India for the World, a leadership podcast series presented by Mint and the Boston Consulting Group (BCG), has just launched its debut episode, spotlighting a topic critical to India’s financial future- How credit bureaus are transforming access to finance.

Hosted by Gopika Gopakumar, the episode features an insightful discussion with V. Anantharaman, Chairman of TransUnion CIBIL, and Yashraj Erande, India Leader, Financial Institutions Practice, and Global Leader, Fintech Practice at BCG, delving into how credit bureaus have evolved, their role in democratising credit, and how technology and data are driving financial inclusion in India. The episode also explores the long-term vision for financial accessibility as India aims for inclusive growth by 2047.

Watch Episode 1 on YouTube

What is a Credit Bureau?

A credit bureau is an independent agency that collects, maintains, and analyses the credit information of individuals and businesses. It compiles data from various financial institutions, including banks, NBFCs, and credit card companies, to create detailed credit reports. These reports include information such as past loans, repayment history, outstanding dues, credit card usage, and defaults. Based on this data, the bureau generates a credit score—a three-digit number that reflects the creditworthiness of the borrower. Lenders use this score to assess the risk of lending, helping them make informed decisions on loan approvals, interest rates, and credit limits.

“As India’s financial ecosystem expands, especially into rural areas, educating consumers on credit, investments, and data security is essential. True financial inclusion starts with awareness—of opportunities, responsibilities, and rights in a digital-first world,” says V. Anantharaman.

The Role of Credit Bureaus

Credit bureaus act as a vital link between lenders and borrowers by providing insights into credit behaviour. Here’s how they function:

• Data Collection: They collect credit information from banks, NBFCs, and credit card companies, including loan accounts, repayments, defaults, and inquiries.
• Information Management: This data is regularly updated to reflect changes like repayments, new loans, or missed payments.
• Credit Report Generation: Bureaus compile detailed credit reports that reflect an individual’s or business’s borrowing history.
• Credit Score Calculation: A three-digit credit score is derived from the report, summarising the borrower’s creditworthiness.
• Data Sharing: These reports and scores are shared with lenders during loan evaluations. Borrowers can also access them to track credit health and spot errors.

Impact of Credit Bureaus on Access to Finance in India

Credit bureaus have significantly transformed how individuals and businesses in India access financial services. Here are some key ways they have made an impact:

• Improved Loan Approvals: With access to detailed credit reports, lenders can assess applications more efficiently, leading to faster and more accurate loan decisions.
• Encouragement of Financial Discipline: Knowing that financial behaviour affects credit scores, borrowers are more inclined to repay loans on time and manage credit responsibly.
• Wider Credit Reach: Credit bureaus have enabled lenders to extend credit to new-to-credit (NTC) customers by evaluating alternate data, thereby improving financial inclusion.
• Reduced Default Risk for Lenders: With insights into a borrower’s repayment history, lenders can avoid high-risk lending, reducing the chances of non-performing assets (NPAs).
• Empowered Borrowers: Individuals can monitor their credit reports, dispute errors, and take corrective measures, giving them greater control over their financial health.

“The rise in credit awareness—knowing that good repayment behaviour impacts future borrowing—has created tremendous value in the ecosystem. It’s why credit penetration has increased even as risk has declined. But for true financial inclusion, we must continue investing in education—whether it's around credit, data privacy, or fraud prevention. The fastest cars need the strongest brakes,” says Yashraj Erande.

Conclusion

Credit bureaus have become instrumental in reshaping India’s financial ecosystem. By offering transparent and data-driven insights into creditworthiness, they are helping bridge the gap between lenders and borrowers, making credit access more efficient, fair, and inclusive. But how exactly are they achieving this at scale, and what does the future hold as India targets inclusive growth by 2047?

To understand the deeper implications of these developments and hear firsthand insights from industry leaders, tune in to the debut episode of India for the World by Mint and BCG. In this episode, V. Anantharaman of TransUnion CIBIL and Yashraj Erande of BCG share powerful perspectives on the evolution of credit bureaus, the role of data and technology, and how India is becoming a model for financial inclusion globally. It's a must-listen for anyone interested in the future of finance in India.

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

Want to get your story featured as above? click here!