This is not happening in a vacuum. Much of this would not be possible if the other roadblocks to going digital weren’t already solved. Other public digital infrastructure such as eKYC for knowing your customer or Unified Payments Interface (UPI) for digital payments are nudging users towards creating larger data footprints, and helping them indirectly improve their creditworthiness.
With this infrastructure in place, we expect the costs for on-boarding those users who are currently excluded by formal credit to nosedive. It will become feasible to serve a large number of customers, operating at a much lower average transaction size.