CVSCORE

Reimagining credit for the

underserved

www.creditvidya.com
 The
challenges

Credit scores play an influential role in a lender’s assessment of a potential borrowers’

risk of default. Traditional credit underwriting focuses on a limited set of data points,
such as bureau scores, bureau reports that look at various aspects of credit (e.g. credit
utilization ratio for a credit card) and (verified) information provided by the loan
applicant. However, credit bureaus cover just 20% of the adult population in India.
Therefore, institutional lenders are unable to expand the market for credit products
when depending on traditional bureau-based methods. A large segment of the
population is thus deprived of reasonably-priced formal credit.

CreditVidya’s CVScore amalgamates alternative data and traditional bureau reports

and uses advanced AI-based algorithms. It applies this superior method of credit
underwriting to two categories of individuals:

New-to- Those who have no credit history and a ‘thin-file’ at tradition-

credit al credit bureaus, i.e. low credit scores. They may also not be
covered by credit bureaus at all. The challenge here is accu-
rate assessment of both their ability to repay as well as intent
to repay an unsecured loan.

Old-to- This category of individuals has a bureau score and has

credit availed of formal credit in the past. When lending to this cat-
egory of customers, lenders are looking to reduce the rate of
default.

01. www.creditvidya.com
 The CreditVidya
advantage

CreditVidya’s SDK is embedded in the app of the lender, and relies on data from the
applicant’s smartphone to make a far more accurate assessment of his/her credit risk
profile. Here’s how:

The SDK accesses over 10,000 data points gleaned from the applicants SMSes (only
commercial, not personal SMSes), such as utility bill payments, e-commerce transac-
tions, other financial transactions, as well as phone-related data around location, for
example. Our proprietary decisioning algorithm analyses this vast unstructured data
and depending on the risk appetite of the lender, either approves or rejects the appli-
cant.

Benefits SDK and API - based solution with zero impact on user
experience

The SDK can be integrated into the lenders android app

within 5 minutes

Bureau-agnostic. It will run with similar accuracies with your

current bureau partner.

Accurately underwrites the entire spectrum of applicants:

new-to-credit, thin-file and old-to-credit

15% higher approvals at zero additional cost

Decisioning is real time and completely automated

Applications: consumer durables, two-wheeler loans,

personal loans

33% lower risk of default at the same level of approval

02. www.creditvidya.com
Below are illustrations of the performance of CVScore for a leading NBFC. Prior to
using CVScore, the lender had an approval rate of 57.5% with a delinquency rate of
2.36%. CVScore helped the lender to approve more customers while reducing the rate
of default.

CreditVidyaScoreTM
One score to rule them all.

CreditVidyaScoreTM
Performs better than CIBIL Score.

03. www.creditvidya.com
 CreditVidyaScoreTM
Data sourcing and training.

CVScore helps lender to increase

approval rates while ensuring lower bad rates.

If we keep bad rates constant at previous

level, we could have increased approved
approval rates by 28%.

Similarly, keeping the approval rates constant

at 57.5%, bad rate reduced by 34%

04. www.creditvidya.com
 Proven A leading PSU bank in India started disbursing (real time)
Impact loans to newer segments like New-to-credit, self employed,
non-banking customers. It has disbursed more than 20,000
loans to date.

A leading NBFC started digital consumer durable lending

basis CVScore as an underwriting tool, disbursing more than
15000 loans per month

A leading NBFC has begun identifying pre-approved leads

from their existing loan servicing app users.

05. www.creditvidya.com
 CVSCORE
To learn more about how CreditVidya can help
your retail lending business, write to us at

info@creditvidya.com

2nd Floor, Block 2, My Home Hub,

Hitech City Road, Hyderabad,
Telangana - 500 081

040-4852 1334
www.creditvidya.com

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