RBI Innovation Hub (RBIH) has launched a pilot project in collaboration with digital lender Vivifi Finance to provide unsecured loans to gig workers.
This initiative aims to integrate gig workers, including cab drivers for Ola and Uber, and food delivery personnel for Swiggy and Zomato, into formal banking channels.
The pilot project leverages alternative data, such as job history, income patterns, and activity on gig platforms, to assess the creditworthiness of gig workers.
This approach moves away from traditional credit scores and focuses on economic and behavioral data to offer credit to gig workers.
The goal is to provide financial inclusion to a rapidly growing segment of the workforce.
RBI & Vivifi Finance: Integration with Unified Lending Interface
Once the pilot is successful, the plan is to integrate it with the Unified Lending Interface (ULI) platform.
The ULI platform, which commenced in a pilot phase on August 17, 2023, aims to unlock critical financial, non-financial, and alternate data for lenders to enable informed credit decisions.
As of December 6, 2024, over 600,000 loans amounting to ₹27,000 crore have been disbursed using the ULI platform.
The gig economy in India is expected to grow significantly. Projections indicate that it will reach 23.5 million workers by 2029-2030.
RBIH’s initiative is a response to the challenges faced by gig workers, such as sporadic engagements, varying working hours, and fluctuating payouts.
By providing unsecured loans, the project aims to offer financial stability and support to these workers.
The pilot project involves Vivifi Finance and three other gig platforms. It uses data from banks, credit bureaus, and gig platforms to underwrite loans.
The stakeholders involved are optimistic about the potential of this initiative to transform the lending landscape for gig workers.
The success of the pilot will pave the way for broader implementation and integration with the ULI platform.
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