Alternative data collection service for Indian banks and NBFCs
The Opportunity
Banks and NBFCs in India struggle to assess credit risk for millions of borrowers who have no traditional financial history — no salary slips, no tax returns, no collateral. The article reveals that AI and alternative data (phone records, utility bills, digital transactions, business records) will reshape risk assessment. A service that collects and verifies this alternative data can unlock lending for India's unbanked population.
Market Size
₹8,500 Cr addressable market annually — covering ~200 million Indians without formal credit history, at ₹5-10 per data verification and ₹500-1000 per full credit assessment
Business Model
B2B service: Partner with 50-100 banks and NBFCs. Build a team to collect alternative data (digital footprint, telecom history, utility payments, business registrations, social proof) and produce standardised credit assessment reports. Charge per assessment or monthly subscription per lending institution.
Per-assessment fees: ₹500-1000 per borrower profile (10,000 assessments/month × ₹750 = ₹75 lakh/month); Subscription model: ₹5-10 lakh/month per bank for unlimited assessments; Data licensing: Sell anonymised alternative data insights to fintech companies at ₹50-100 lakh/year
Your 30-Day Action Plan
Map 20 mid-sized NBFCs in tier-2 cities (easier to close than big banks). Interview 5 lending managers to validate their pain point: 'How do you currently assess risk for borrowers with no formal financial history?' Document exactly what data they need.
Build a simple data collection template (Google Form + spreadsheet backend). Manually collect alternative data for 50 test borrowers using public sources (GST database, business registrations, telecom public records). Create 5 sample assessment reports showing risk score + recommendation.
Approach 2-3 friendly NBFCs with your 50 test cases. Offer free pilot: 'Let us assess 100 of your loan applications, you tell us if our risk scores match your actual loan performance.' Get written feedback and 1-2 signed term sheets.
Formalize business structure (Register as LLP or Pvt Ltd). Apply for DPIN (Director PIN) and GST. Start building basic automation: web form intake + report generation tool. Hire 2 junior data collectors. Close first paying customer by end of week 4.
Compliance & Regulatory Angle
GST 18% on services. No RBI license needed (you are a service vendor, not a lender). However: Data Protection — comply with NPCI guidelines on customer data sharing; Data Privacy — obtain explicit written consent from borrowers before accessing their telecom/utility records; Telecom data access — partner with licensed data aggregators (PhonePe, Amazon Pay, etc.) to legally access telecom history; Utility data — access public registries (DISCOMS) or partner with utility billing platforms. Keep audit trail of all data accessed.
Ready to Act on This Opportunity?
Generate a 7-step execution plan — validate the market, build the MVP, model the financials, map the risks, and ship in 30 days.