Experian Looking at Growth Opportunities in India

Experian-India-GrowthExperian leading Credit Bureau globally is prioritizing growth (6-8% organic in our model) over margin expansion. This is probably in the best interest of company and investors. The four main growth drivers Experian is focusing on are

  1. Geographic expansion,
  2. Increasing data depth
  3. Growing business segments within each geography, and
  4. Introducing and monetizing new products / verticals.

The company appears well positioned to profit from big global

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Can CIBIL Data be used for Marketing? Does CIBIL Track Telephone / Utility Bill Payment, Insurance Records ?

Many readers have posed Authentic Questions to Us being the leading publication on Credit Bureau and Card industry in India. One of the readers asked me – Can CIBIL data be used for marketing ? Does CIBIL produce some information reports ?

By law [Credit Information Companies Act, 2005 2006] neither CIBIL nor any other Credit Bureau operating in India cannot use their data repository for soliciting business or for marketing purposes.

However, CIBIL, based on its significant database, has been helping banks profile customers in several new geographies. For eg, if a bank wants to do retail business in a certain region, CIBIL can generate

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What Type of Data Repositories CIBIL Collects? Ranging from Individual to Frauds

CIBIL Transunion is the leading Credit Bureau of India with with the largest number of credit information records. RBI the Indian Financial System regulator has mandated every Financial Institution including Banks in India to submit Lending Data to atleast one Credit Bureau / Information company. Over 800 FIs upload data about Borrowers on a monthly basis to CIBIL.

We’ll see what kind of Data Repository CIBIL is Maintaining and the Definition / Meaning of each of these terms,

Individual Consumer Database CIBIL has Information on 135mn Indian / NRI individuals or

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What is the Profits Earned by Banks on Cash Advances Lending on Credit Cards in India ?

In the Previous Article, we have already discussed about the Cash Advances Market in India on various Metrics. Today we’d like to Highlight the Profits Indian Banks Make from the Cash Advances Segment of Credit Card [CC] Lending.

As already seen, the Cash Advanced on CC was Rs 1,259 Cr spread across 21.90 Lakh Transactions in FY 2011-12. Every Bank levies two types of fees on Cash Advances – 1] Transaction fees which is Rs 300 or 2.5% of the Amount Withdrawn, whichever is Higher and 2] Interest Rate from the Day when Cash has been withdrawn – 3% per month or more

The following Screenshots show the Cash Advance Transaction fees and APR on

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How Big is “Cash Advances on Credit Cards” Market in India ?

Authentic Data and Statistics on any consumer related market is a wealthy piece of information. After having done ton of correspondence, sometimes paid to the officers of bank, we have obtained data on the Cash Advances obtained by Consumers on their Credit Cards in India. Today we’d like to present to you the size of the market, average transaction and the profit the banks are making from cash advances.

Size of the Cash Advances Market for FY 2011-12
Indians withdrew cash of Rs 12595.86 Mn [Rs 1259.58 Cr] using their Credit Cards from various bank ATMs in 2,190,662 number of transactions; Thus the Average Cash Withdrawal transaction at ATM was of Ticket Size Rs 5749.79 rounded of to Rs 5750.

The Following Table Shows Monthwise Data of Cash Advance Withdrawal and No of Transactions in FY 2011-12

Read moreHow Big is “Cash Advances on Credit Cards” Market in India ?