Digital lending to surpass traditional lending on unsecured loans by 2030: Experian India
  • Co-lending to be prime operating model, predicts Experian’s white paper: Fintech-led Digital Lending: Coming of Age
  • Open data to create level playing field for fintech and traditional lenders
  • Next 100 million customers to be vastly different in profile and expectations
  • Fintechs to become systemically important, but will face high regulatory supervision
  • Fintechs will have to invest significantly higher in cybersecurity and compliance

MUMBAI, 14 February 2023: The fintech revolution is likely to spur digital lending in India, which is expected to surpass traditional avenues of lending by 2030. This will be driven by deeper inroads being made in the unsecured small-ticket size segment and the secured collateral-based high-ticket size market, according to the latest white paper Fintech-led Digital Lending: Coming of Age by Experian India in collaboration with the Digital Lending Association of India (DLAI).

Experian India analysed the role of fintech-led digital lending in reducing the credit gap, which drives credit coverage and financial inclusion. The research provides key predictions on the digital lending landscape till 2030, providing valuable takeaways across the digital lending ecosystem, including the digital lending industry, key stakeholders, and regulators. As co-lending becomes the predominant operating model in India, more traditional lenders will collaborate with fintechs to reach a higher degree of maturity and amalgamation of core competencies.

Delving deeper into the transformative changes ushered in by the fintech industry, Fintech-led Digital Lending: Coming of Age discusses how digital lending has provided a superior customer experience by reducing the turnaround time for credit applications. The research found that fintechs have significantly helped reduce geographical disparities in the credit supply.

Commenting on the key findings, Saikrishnan Srinivasan, Managing Director, Experian Credit Information Company of India, says: “Our research delves into how fintech-driven digital lending can help bridge the credit gap in India. Traditional lenders have always dominated asset-backed lending. With increased digitisation, this segment may become accessible to fintechs, allowing them to capture a sizeable portion of the lending pie. At Experian, we are committed to strengthening the credit ecosystem and driving financial inclusion.”

Siddharth Mahanot, Chairperson – Knowledge Committee, DLAI, says: With the release of this whitepaper, we are excited to offer a comprehensive look into the impact of fintech-led digital lending in India. This report represents our joint efforts with Experian to assess the impact of the digital lending ecosystem.”

The Indian credit market has undergone significant changes over the last few years, and this trend is likely to accelerate further in the near future. The research highlights that the next 100 million customers are likely to have a vastly different profile and expectations than those currently in place. While digital lenders have responded well to automating the credit decisioning process and enhancing the onboarding experience, the evolving landscape will challenge the fintech companies in the next wave of growth. For MSME borrowers seeking business loans, those with credit scores higher than 700 are catered to more by fintechs than by other lenders, paving the way for the co-lending model to flourish.

The white paper offers key recommendations and guidance for the fintech sector, and predicts that pivotal players of the future will be the ones able to harness the power of analytics and technology to provide a superior experience in an embedded manner. For example, open data will become wider in scope, creating a level playing field for fintechs with traditional lenders. In a similar vein, big technology organisations will also play a greater role. However, as fintechs become systematically important in catering to credit demand, they are likely to come under greater regulatory supervision, and need a significantly higher investment in compliance, cyber security, and other business critical functions. Fintechs will also need to focus on funnel optimisation for sustainable growth. In this respect, portfolio monitoring and cross-sellingwill assume a lot of importance.

Download the Fintech-led Digital Lending: Coming of Age white paper today. 


About Experian

Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have 21,700 people operating across 30 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at or visit our global content hub at our global news blog for the latest news and insights from the Group.