How AI is redefining creditworthiness beyond traditional credit scores
By Mahesh Shukla, Founder and CEO of PayMe
Creditworthiness in India has long been defined by a single score shaped by past borrowing behaviour. Nevertheless, this narrow lens overlooks the financial realities of millions operating beyond formal credit systems. Individuals with steady incomes, consistent bill payments as well as prudent spending habits typically find themselves excluded from credit access due to the absence of a recorded history. This gap highlights the inadequacy of traditional scoring models in a rapidly transforming economy.
The emergence of artificial intelligence (AI) is reshaping this landscape by integrating alternative data such as cash flows, digital transactions, and income stability—expanding rather than replacing conventional frameworks. As a result, lenders are starting to move beyond static metrics, adopting a more nuanced, behaviour-led approach to assessing risk and repayment capacity.
Augmenting Credit Scores with Behavioural Intelligence
Traditional credit scoring frameworks, based on bureau data such as repayment history...
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