Understanding Bharat — Decoding the DNA of Indian Merchants | Data Sutram

Understanding Bharat — Decoding the DNA of Indian Merchants

FinancialLocation IntelligenceRetail
Samriddhi Ganguly

Samriddhi Ganguly

July 22, 2021

0clap

Major Factors used to determine a Borrower’s Credit Worthiness

Much Ado About Creditworthiness

Fearing the rise of Non-Performing Assets and default risks, Indian banks rely on the stringent structure of 5 C’s -Character, Cash Flow, Condition, Capital, and Collateral- before granting the loan to merchants.

While large enterprises might boast of a good credit score, India’s MSME sector, most of which lack collateral or past credit history, are posed with an infinite loop of credit rejection, as banks fear the high cost of small ticket size loans.

The Merchant DNA- An Essential Ingredient

The fintech sector aims at revolutionizing the SME lending space and decode the Merchant DNA with technology and a new vision.

Past credit history and CIBIL score are not the only determinants for granting loans.

Rely on alternative data from sales, invoices, GST returns.

Spatial analysis of merchants geocodes loan data

Geocoding Merchant DNA

The data serves as the merchant DNA that fuels the SME lending space, digitization of lending platforms, and financial inclusion of the underbanked.

Merchant Acquisition

Visualize and scan the entire profile of merchants pan-India and generate quality leads using Location Intelligence-

  • Merchant Name
  • Merchant Address
  • Customer Footfall
  • Potential Score

Field Investigation

Technology is power. Technology is speed. GIS application unleashes the power of field investigation for the verification of merchants in a jiffy. A Confidence Score generated by a Location Intelligence platform ensures the veracity of the merchant. Bid adieu to the days when agents would have to physically verify the existence of merchants.

Location Score- An estimate of the business propensity of an area to gauge Delinquency

Location Profiling to Mitigate Risks

Once the on-ground sales team has full access to the merchant database, geospatial Trade Area analysis cites powerful observations about creditworthiness and delinquency that assigns merchant score based on

· Business potential

· Expansion opportunities

· Affluence

· Market trends

· Customer footfall and Economic Activity

· Competition

Grid Level Analysis of consumer demographics for extracting Location DNA

Young India- The Path Ahead

The merchant DNA speaks volumes about the underlying crisis, credit gap, and potential of young India, that traditional risk modeling fails to capture. It is the need of the hour to finance the credit gap and scale up infrastructure for low-cost SME funding. The grassroots level analysis of micro-merchants will reveal the economic picture of India and lead to the adoption of schemes that would enhance their position. It is when the local grocer or a retail vendor crosses the eligibility threshold for formal credit, that we can claim to have understood the essence of Bharat, and lead the way forward towards a holistic economic development.

clap0 claps

LIKE WHAT YOU READ?

Connect with us to know how
Datasutram can help your business

Articles for you

Hitting the Bullseye- Targeted Merchant Acquisition with Alternative Data

Hitting the Bullseye- Targeted Merchant Acquisition with Alternative Data

FINANCIAL

Can data truly help improve merchant acquisition and lending opportunities for business owners?

Barnika Bhandari

Barnika Bhandari

November 11, 2021

The 3Es Fulfilled By Neobanks

The 3Es Fulfilled By Neobanks

FINANCIAL

The future of finance lies in neobanks, bridging traditional financial gaps!

Barnika Bhandari

Barnika Bhandari

October 28, 2021

How does Payment Gateway allow Merchants to go beyond traditional limitations?

How does Payment Gateway allow Merchants to go beyond traditional limitations?

FINANCIAL

Disruptive payment providers have formed the pivot around which fintech revolves- but how?

Kartiki Sagar

Kartiki Sagar

October 21, 2021

Account Aggregation — A Long Smooth Road to Success in Lending, with a Few Hurdles

Account Aggregation — A Long Smooth Road to Success in Lending, with a Few Hurdles

FINANCIAL

Account Aggregators- Demystifying digital finance and helping integrate formal credit into the Indian lending space!

Barnika Bhandari

Barnika Bhandari

September 30, 2021

BNPL: A revolution in the Indian Micro Lending Space

BNPL: A revolution in the Indian Micro Lending Space

FINANCIAL

Buy Now Pay Later- The Newest Unconventional Finance Model, brewing up a storm in the payments ecosystem!

Sagnik Sarkar

Sagnik Sarkar

September 23, 2021

PhonePe Pulse & Data Sutram- Establishing Market Dominance with Alternative Data

PhonePe Pulse & Data Sutram- Establishing Market Dominance with Alternative Data

FINANCIAL

PhonePePulse has taken the market by storm- but Data Sutram can enhance the craze further!

Sagnik Sarkar

Sagnik Sarkar

September 16, 2021

The Fintech Cauldron- Loan Risk Calculation in SME Lending

The Fintech Cauldron- Loan Risk Calculation in SME Lending

FINANCIAL

SMEs are capable of strengthening the economy, but are often stuck in a vicious loop restricting their access to credit. Can Location Intelligence serve as the solution?

Samriddhi Ganguly

Samriddhi Ganguly

September 9, 2021

Top 4 Reasons why businesses need Location analytics

Top 4 Reasons why businesses need Location analytics

LOCATION INTELLIGENCE

Read more on how Location Analytics can help businesses from a 360° operations point of view!

Shraddha Singh

Shraddha Singh

September 2, 2021

Location Scorecard- The alternative Credit Bureau

Location Scorecard- The alternative Credit Bureau

FINANCIAL

Alternative Data has been selling like hotcakes - but how can it be leveraged?

Sagnik Sarkar

Sagnik Sarkar

August 19, 2021

Top 3 ways of Merchant Onboarding by Financial Institutions

Top 3 ways of Merchant Onboarding by Financial Institutions

FINANCIAL

With an increasing adoption rate of digital payment services, brick and mortar store payments cease to function traditionally!

Barnika Bhandari

Barnika Bhandari

August 17, 2021

Sharma Ji’s Store- The Path to Revival of Indian Economy

Sharma Ji’s Store- The Path to Revival of Indian Economy

FINANCIAL

The backbone of India's retail economy lies in the kirana stores- but what's next for them?

Samriddhi Ganguly

Samriddhi Ganguly

August 8, 2021

India’s fintech boom — Is it progressing in the right direction?

India’s fintech boom — Is it progressing in the right direction?

FINANCIAL

Necessity may be the mother of invention; but disruption is the true driver of innovation!

Barnika Bhandari

Barnika Bhandari

August 5, 2021

Why Indian banks need to reconsider their strategy NOW!

Why Indian banks need to reconsider their strategy NOW!

FINANCIAL

Can the disruptions introduced by the massive success of the fintech sector become the New Financial Normal?

Sagnik Sarkar

Sagnik Sarkar

July 29, 2021

Understanding Bharat — Decoding the DNA of Indian Merchants

Understanding Bharat — Decoding the DNA of Indian Merchants

FINANCIAL

The fintech sector aims at revolutionizing the SME lending space and decode the Merchant DNA with technology and a new vision - is this the financial change India needs at its grassroots level?

Samriddhi Ganguly

Samriddhi Ganguly

July 22, 2021

The Housing Finance Sector and Their Need for Geospatial Analysis

The Housing Finance Sector and Their Need for Geospatial Analysis

FINANCIAL

Location Analytics - Providing Key Business Insights For The Real Estate Finance Sector!

Barnika Bhandari

Barnika Bhandari

July 15, 2021

Creditworthiness and Delinquency- Mitigating risks using Location Intelligence

Creditworthiness and Delinquency- Mitigating risks using Location Intelligence

FINANCIAL

Merchant acquisition made 2X times efficient with transformative bank models!

Samriddhi Ganguly

Samriddhi Ganguly

July 8, 2021

Hyperlocal Geotargeting using Location DNA for Retail Businesses

Hyperlocal Geotargeting using Location DNA for Retail Businesses

LOCATION INTELLIGENCE

“Hyperlocal marketing” or “Hyperlocal geotargeting” has turned a buzz word post the emergence of user-created journalism- and rightly so. Read on more to understand why this is a crucial aspect businesses must have!

Sagnik Sarkar

Sagnik Sarkar

July 1, 2021

Top Trends in Geolocation for 2021

Top Trends in Geolocation for 2021

LOCATION INTELLIGENCE

Location intelligence (LI) technology has evolved at a faster pace. Companies are discovering new use cases for LI, from crisis management and field force monitoring to supply chain management. Let’s take a look at some of the key trends that will shape the localization industry in 2021.

Shraddha Singh

Shraddha Singh

June 25, 2021

Going Hyperlocal: The Next Big Thing For India’s Pharma Industry

Going Hyperlocal: The Next Big Thing For India’s Pharma Industry

LOCATION INTELLIGENCE

There is a massive dearth of predictive analytics to understand consumer behavior to streamline OTC product marketing, especially FMCG/non-prescription drugs

Rajit Bhattacharya

Rajit Bhattacharya

December 31, 2020

How is Big Data impacting the e-commerce industry?

How is Big Data impacting the e-commerce industry?

RETAIL

Big data helps businesses navigate their way through a jungle of data. They can extract relevant information, and analyze it to optimize all facets of business.

Rajit Bhattacharya

Rajit Bhattacharya

January 13, 2021

Alternative data for business insights

Contact Us

Subscribe to our newsletter

© 2021 Copyright: Extrapolate Advisors Pvt. Ltd.
© 2021 Copyright: Extrapolate Advisors Pvt. Ltd.