The rise of self-monitoring consumers

Financial literacy is rising in India, and Indians are becoming increasingly aware of credit management. The population of self-monitoring consumers has increased rapidly at a CAGR of 59 per cent between FY21 and FY24. Self-monitoring is the process of consumers checking their credit scores on their own. While the credit scores of 46 per cent of consumers have improved after the self-monitoring exercise, that of 41 per cent of consumers saw a decline. Trends also show a high preference among self-monitoring consumers for consumption-based credit products.