Credit Card

By value, credit cards are the second most-used retail lending product (by active loans), holding an 18.5% market share, with personal loans taking the lead at 20.8%. Since 2020, new card growth has surged by approximately 69%, with 10.45 million cards now in circulation. The credit uptake for consumption in India is growing at a phenomenal rate, primarily driven by private banks, which hold over 70% of the market.

The average number of POS transactions per credit card per month is 1.88, up from 1.6 last year, while online transactions per card per month have risen to 1.79 from 1.5. Additionally, the value of POS transactions per card per month stands at INR 5,956 ($72), and the value of online transactions per card per month is INR 10,556 ($121). Amidst this impressive growth, it's important to note that the portfolio-at-risk (90+ days) percentage is at 12.5%.

Given these trends, protecting individual customers who genuinely suffer from health issues resulting in income loss and debt repayment challenges is crucial. This will ensure that growth momentum continues for genuine customers without fear of financial setbacks. This aligns with the concept of bite-sized insurance, which appears to be the most effective solution for driving greater non-life insurance penetration.

Source: 

CRIF lending report

RBI Bank Data