Current Affairs · Financial Technology and Banking
When incorporating alternative data (such as utility bill payments, rental history, and mobile recharges) into credit scoring for New-to-Credit (NTC) borrowers in India, which operational challenge is most prominent for banks?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The acquisition cost of alternative data exceeds total interest income on small-ticket loans.
- 2Alternative data shows zero statistical correlation with repayment behaviour.
- 3The lack of a centralized, standardized database for utility and telecom payments creates issues with data integrity and verifiability.✓
- 4The CIC Act 2005 prohibits using alternative data for credit evaluation.
Correct answer
The lack of a centralized, standardized database for utility and telecom payments creates issues with data integrity and verifiability.
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