UPI and digital technologies are changing the credit card industry with recent technological advancements and Credilio is leading this change by making it easy to use UPI with its credit cards, said, Aditya Gupta, CEO at Credilio in an interview with SME Times.

Excerpts of the industry…

What strategies can be enacted to ensure responsible lending practices while expanding credit card services into underserved sectors in India?
Aditya Gupta: In India, where many people in underserved areas lack access to credit cards, it's essential to lend responsibly and promote financial literacy. Companies should be transparent and clearly explain the terms, fees, and responsibilities of using credit cards. To prevent overspending, companies should have strict criteria for approving new accounts and set credit limits based on individual financial histories. Additionally, monitoring creditworthiness and making adjustments as needed can help underserved communities build credit while managing risk.

How UPI and digital trends are shaping the future of credit card industry?
Aditya Gupta: As we all know, UPI and digital technologies are changing the credit card industry with recent technological advancements. Saying that, UPI integration in credit cards lets users pay directly from their bank accounts with extra security. Whereas, digital platforms allow for personalized experiences, real-time transaction tracking, and new rewards programs that meet changing customer needs. Credilio is leading this change by making it easy to use UPI with its credit cards. Its focus on users and use of advanced tech makes Credilio a leader in the credit card industry, giving customers both ease of use and safety.

What is the impact of digital transformation on credit accessibility for Micro, Small, and Medium Enterprises (MSMEs)?
Aditya Gupta: Technological advancements are empowering small businesses by simplifying the loan application process. Data-driven decisions automate loan approvals, while innovative loan products cater to MSMEs' unique needs. By leveraging external data sources and cutting-edge technology, loan processing accelerates, securing competitive interest rates. These advancements fuel MSMEs' growth, bolstering their economic contributions. Credilio revolutionizes the lending industry by integrating AI algorithms for real-time risk assessment, streamlining the approval process. Furthermore, its customizable loan products tailored for MSMEs ensure flexible financing solutions, fostering sustainable growth.

How are fintech innovations reshaping consumer preferences towards credit cards in underserved segments?
Aditya Gupta: Technology-based financial companies are transforming the perception of credit cards for individuals from underserved communities. These innovative solutions tackle challenges such as limited credit history and lack of required documentation. Fintechs leverage technology to develop tailored credit card products, offer financial education resources and reward responsible money management. By doing so, they foster trust and loyalty among underserved consumers, strengthening their relationship with your business.

Why credit cards penetration is significantly low in non-urban markets even though demand is huge?
Aditya Gupta: Even though many people use credit cards, the usage of the same is not similar to that of big cities because of poor infrastructure and a lack of understanding. To address this gap, several fintech companies are leveraging digital tools to enhance the accessibility of credit cards in these regions. They aim to enhance accessibility and educate non-urban populations about the benefits of credit cards. Credilio, for instance, pioneers this effort by tailoring credit card plans for such demographics. Through advanced technology, it simplifies credit assessment, offers personalized credit limits, and provides financial literacy resources, fostering financial inclusion and empowerment in underserved areas.

How do secured credit cards contribute to expanding financial inclusion?
Aditya Gupta: Secured credit cards, like the SBM Credilio Credit Card, are crucial for financial inclusion, granting access to financial services for those with limited credit history or poor scores. A security deposit lowers risk for issuers, enabling credit extension to otherwise ineligible individuals. These guaranteed cards offer perks such as cashbacks and rewards, fostering responsible spend and credit habits. Also, timely payments help build credit, opening doors to unsecured credit cards, loans, and mortgages. This broader access empowers individuals to pursue financial goals, from homeownership to entrepreneurship. Ultimately, secured credit cards bridge gaps in financial access, promoting economic stability, and leveling the financial playing field.

What is the plan of Credilio in the coming years?
Aditya Gupta: Credilio’s vision is to provide access of Credit products to extended Bharat. We are targeting 400 million adults who have their own earnings and belong to the consuming class. Credilio aims to be the largest distributor of credit products in the country by catering to customers up to Tier 5 locations.

** The views expressed in this interview are solely that of the interviewee and do not necessarily reflect the views of SME Times.