Overview

Data Sutram released FinSecure 2026, a landscape report that frames trust infrastructure as essential for India’s ambition to become a $30 trillion economy by 2047. The report, authored by the enterprise AI trust platform serving more than 40 Indian banks and financial institutions, projects that the nation’s private credit stock must grow from roughly $4 trillion today to $45 trillion in the next 21 years, which translates to an annual dollar‑term growth rate of 12.2%. At present, private credit stands at 102.3% of GDP, lagging behind the United Kingdom (132.6%), the United States (140.3%) and China (200.8%) according to BIS data.

Credit Penetration Gap

India has 89 crore credit‑eligible adults, yet only 28% are borrowing, leaving an estimated 60 crore potential borrowers—including young consumers, micro‑enterprises and rural households—without formal credit histories. Traditional credit‑bureau data are limited for first‑time borrowers because credit histories are built primarily through prior borrowing. The share of new‑to‑credit borrowers has fallen from 23.5% to 17.8% of originations over the past four years (CRIF).

Key Findings

1. Secured Lending Information Gaps – Large‑ticket credit applications are hampered by extensive paperwork, limited borrower information and long processing times. In FY25, 8.56 crore income‑tax returns were filed, of which only 11.4 lakh were filed by companies and 16.6 lakh by firms. Moreover, only 41% of MSMEs have accessed formal credit, underscoring persistent data deficiencies.

2. Rising Fraud Sophistication – The suspected digital fraud rate is 7.1% of transactions, more than double the global average of 3.8% (TransUnion). The Indian Cyber Crime Coordination Centre (I4C) recorded ₹22,495 crore in losses across 28.15 lakh complaints in 2025, with investment scams accounting for 76% of the loss value. Fraud networks increasingly employ mule accounts, synthetic identities and organized scam infrastructure.

3. Gen Z Credit Opportunity – Generation Z constitutes half of new‑to‑credit‑card consumers. Although this cohort represents 34% of the eligible population, its credit penetration is only 16%, indicating substantial room for responsible credit expansion.

4. Rural Credit Access Challenges – 46% of new‑to‑credit consumers now originate from semi‑urban or rural areas. Over 25 crore Indians continue to use feature phones, predominantly on 2G networks (IDC & Counterpoint). In the micro‑finance sector, 1.8 crore borrowers exited between June 2024 and March 2026, while average ticket sizes rose 23% and PAR 180+ ratios tripled to 16.3%, highlighting the need for servicing models that work across diverse device ecosystems.

AI‑Driven Transformation Areas

1. Real‑time Large‑Ticket Lending – Leveraging consent‑based data from the Account Aggregator ecosystem, which has amassed 538 million consents, alongside GST records and bank statements, can bridge information gaps for borrowers lacking formal documentation. AI agents can automate document verification, due diligence and credit‑memo preparation, shortening processing cycles.

2. Real‑time Fraud Detection – AI enables a shift from post‑transaction fraud reporting to proactive risk intelligence, identifying mule accounts before transactions, detecting synthetic identities during onboarding, and distinguishing legitimate from fraudulent activity. The Supreme Court has directed the RBI to issue a Standard Operating Procedure for mule accounts, underscoring regulatory focus on coordinated fraud prevention.

3. AI‑Led Underwriting for Gen Z – By analysing behavioural and alternative signals during transactions, AI can embed credit decisions directly into the purchasing journey, eliminating the need for separate applications.

4. Voice‑Based Financial Services for Rural India – Voice AI in local languages can facilitate applications, verification, repayment communication and customer servicing for feature‑phone users, improving the economics of servicing smaller‑ticket borrowers where field‑based collection is costly.

FinSecure Index

FinSecure 2026 introduces the FinSecure Index, a five‑level framework that evaluates the evolution of financial‑trust capabilities—from static bureau assessments to continuous, agentic trust. The index includes a diagnostic tool for chief risk officers to benchmark their organisations’ trust maturity.

Methodology & Sources

The report synthesises insights from eight CXO interviews across Indian banking, fintech and consulting, proprietary Trust Score data from seven lenders, and public datasets from the RBI, BIS, IMF, CRIF, TransUnion CIBIL and Sahamati.

About Data Sutram

Founded in 2020 and headquartered in Mumbai, Data Sutram develops Trust AI, an enterprise AI trust platform for the Indian financial sector. Its product suite comprises Trust (back‑office automation), Auth (risk intelligence with alternative data and Trust Score 2.0) and Echo (voice‑agent platform for customer conversations and collections). The company is backed by Lightspeed and B Capital and currently serves 40+ financial institutions.

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