Swipe, Spend, Repeat: India's Credit Culture In Transition
Introduction: India is one of the fastest-growing economies in the world but there exists a significant gap in accessing formal credit, especially when compared to other developed nations. Banks and financial institutions (FIs) are working on filling this gap by introducing new payments products and instruments that would make it easier to access formal credit. Traditionally, formal credit was restricted to financial products such as home, auto and personal loans. However, banks and FIs have recently shifted their focus towards instruments like credit cards, buy now, pay later (BNPL) and credit EMIs. New FinTech players have disrupted the market by introducing new and innovative products and offerings to consumers. Credit cards, BNPL and credit EMIs have witnessed large-scale issuance and growth in usage. Traditional banks and new start-ups are focusing on acquiring new customers by allowing access to credit for the unbanked/underserved segment. Credit Usage and Growth: Credit in I...