Here the role of staff, particularly the frontline staff, of the banks and the field staff of the Business Correspondents/agents is very critical in handholding the new generation customers as they transit from assisted mode to self service mode of digital banking. This would also require partnering with merchants for acceptance of mobile payments.
Such risk-based pricing is consistent with expanding access to credit. Indeed, many of those receiving higher-rate loans would in the past have been denied credit at lower rates. However, some banks are concerned about the risk to their reputation that might be precipitated by the new HMDA data on rates charged for the higher-rate segment of the market.