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The Print
3 days ago
- Business
- The Print
More salaried than self-employed Indians earning less than Rs 25k a month face borrower stress—study
The study analysed 20,000 borrowers for over a year to determine their credit scores, using AI, machine learning, and data science techniques on the Algo360 platform. With both data science and Artificial Intelligence, is a firm that helps banks and financial institutions make credit decisions. It is a subsidiary of Computer Age Management Services (CAMS) that works as a mutual fund transfer agency. New Delhi: Over 70 percent of the self-employed earning less than Rs 25,000 a month in India are witnessing acute financial strain in servicing the multiple small loans they have been taking, according to a study conducted by . The study has revealed that though both the salaried and the self-employed—earning less than Rs 25,000/month—faced financial strain, the share of the salaried missing to pay at least one of the equated monthly instalments (EMI) on loans was 76 percent, a higher share than the 64 percent of the self-employed who missed at least one EMI payment. ThePrint contacted Mr. Amit Das, the CEO, who said, 'Credit stress across India is uneven: low-income borrowers, often managing multiple small loans, driven by multiple life priorities, face the highest risks and defaults, whereas those earning steadily above Rs 25,000 a month enjoy steadier finances and lower defaults.' Das further said, 'Smaller towns and semi-urban areas in Bharat have lower financial literacy and higher reliance on informal lenders, whereas large city centres have easier and broader access to formal credit.' The study cited a macroeconomic headwind, which can be due to ongoing global conflicts and prevailing uncertainties over tariffs, most impacts those servicing multiple loans at low income or salary levels. 'On average, salaried borrowers hold three active loan accounts, while self-employed individuals manage four, with a higher tilt towards informal and collateralised credit products,' the study has explained. Perfios and PWC India published a report, How India Spends: A Deep Dive into Consumer Spending Behaviour, earlier this year, showing that salaried individuals across city tiers allocate over a third of their monthly income towards EMI. This finding reflects a high level of reliance on loans by salaried individuals—a trend that increases the risk for lenders. The study has recommended moving beyond the traditional credit scores, which, in underserved segments, can not determine the financial situation, for the timely assessment of the risks. It also emphasised a behaviour-driven underwriting framework to give more inclusive and accurate credit assessments for individuals whose incomes are irregular and fall outside the formal credit systems. Using and analysing alternative data, including spending patterns, transaction volume, and repayment trends, can help to create more accurate borrower profiles, which are open to risk-based segmentation, the study has asserted. According to Das, 'lenders, especially, tech-driven lenders, are responding with enhanced credit assessment, nuanced risk-based pricing, continuous risk monitoring, financial education, flexible repayment options, and alternative data partnerships, thereby building a more resilient and inclusive financial ecosystem'. (Edited by Madhurita Goswami) Also Read: Don't count countries above India in per capita GDP. Look at the population instead
Free Malaysia Today
06-06-2025
- Business
- Free Malaysia Today
Amazon agrees to tackle fake reviews in UK, says regulator
In 2024, Amazon blocked more than 275 million fake reviews worldwide. (AFP pic) LONDON : Amazon has agreed to clamp down on fake online reviews of products advertised on its UK site, Britain's competition regulator said today. Google agreed a similar UK commitment in January after the Competition and Markets Authority (CMA) launched an investigation into the matter five years ago. Amazon 'has signed undertakings committing to enhance its existing systems for tackling fake reviews and catalogue abuse', the CMA said in a statement today. 'Catalogue abuse involves sellers hijacking the reviews of well-performing products and adding them to an entirely separate and different product to falsely boost its star rating', the regulator noted. The CMA said 'Amazon has committed to tough sanctions for businesses that boost their star ratings,' which could see them banned from its UK site. An Amazon spokesman told AFP that the company already invests 'significant resources to proactively stop fake reviews ever appearing… including on expert human investigators and machine learning models that analyse thousands of data points to detect risk'. They added that last year, Amazon 'blocked more than 275 million fake reviews (worldwide), with more than 99% of all products… containing only authentic reviews'. The UK regulator said that around 90% of UK consumers use online reviews when deciding on a purchase. It added that 'as much as £23 billion (US$31 billion) of UK consumer spending is potentially influenced by online reviews annually'. 'So many people use Amazon, from buying a new bike lock to finding the best coffee machine – and what's clear is that star ratings and reviews have a huge impact on their choices,' CMA chief executive Sarah Cardell said in today's statement. 'That's why these new commitments matter and help set the standard. 'They mean people can make decisions with greater confidence -knowing that those who seek to pull the wool over their eyes will be swiftly dealt with'. The CMA in May 2020 opened an investigation into 'several major websites' that display online reviews, which led to the opening of a formal probe into Amazon and Google 13 months later. 'The undertakings from Amazon and Google, alongside our recently published advice to review platforms, paint a clear picture of what the law requires from businesses,' Cardell said. 'Following this, we're now launching the next phase of our work. 'This will scrutinise whether review platforms, businesses who list products on them, and reviewers themselves, are complying with the strengthened laws around fake reviews,' she said.
Bloomberg
02-06-2025
- Business
- Bloomberg
Bloomberg Surveillance: Tariffs and Debt
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney June 2nd, 2025 Featuring: 1) Stephen Stanley, Chief Economist at Santander, joins for an extended conversation on the outlook for the US economy, lower consumer spending, and potential for a shallow recession in the US. Global stocks started the new month under pressure due to a flare-up in global trade tensions and geopolitical uncertainty. Gold is heading for its biggest gain in almost four weeks as geopolitical and trade tensions revived demand for haven assets. 2) Kathy Jones, Chief Investment Strategist, Fixed Income at Charles Schwab, discusses bond market warnings and why the Fed won't be coming to the rescue any time soon. The dollar fell 0.5%, extending a streak of five monthly losses, while Treasury yields rose across the curve, with the 10-year rate up four basis points to 4.44% in the early part of the morning as risk appetite dissipates. 3) Maya MacGuineas, President of the Committee for a Responsible Federal Budget, talks about the House bill "debt fiasco" and why markets haven't fully awaken to the debt and deficit problem in the US. It comes as Treasury Secretary Scott Bessent says the US "is never going to default" as the deadline for increasing the federal debt ceiling approaches. Bessent declines to specify an "X date" for when the Treasury will run out of cash, but says the goal is to bring the deficit down over the next four years. 4) Henrietta Treyz, co-founder at Veda Partners, talks about President Trump threatening an increase to steel and aluminum tariffs, how the tax bill could be transformed in the Senate, and other DC headlines. Uncertainty prompted by President Donald Trump's trade agenda picked up after China and the US accused each other of violating a trade deal concluded last month. Trump also said he would double tariffs on steel and aluminum imports. Meanwhile, Ukraine staged a dramatic series of strikes across Russia, deploying drones hidden in trucks deep inside the country to hit strategic airfields. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including an NYT story on Gen Z's interest in chain restaurants and a Business Insider story on AI already taking human jobs.
Yahoo
31-05-2025
- Business
- Yahoo
Charting the Global Economy: US GDP Falls on Larger Trade Hit
(Bloomberg) -- The US economy contracted slightly to start the year, largely reflecting a bigger tariff-related trade hit but also a larger downshift in household spending growth than first estimated. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months The Economic Benefits of Paying Workers to Move Where the Wild Children's Museums Are In contrast, an export surge help drive the Canadian economy in the first quarter as businesses accelerated shipments ahead of higher US duties. Gross domestic product in India rose at a stronger-than-forecast 7.4% pace. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: US & Canada The US economy shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially reported. The economy's primary growth engine — consumer spending — advanced 1.2%, down from an initial estimate of 1.8% and the weakest pace in almost two years. Meantime, net exports subtracted nearly 5 percentage points from the GDP calculation, slightly more than the first projection and the largest on record. A strong jump in tariff-driven exports fueled Canada's growth at the start of this year, offsetting domestic weakness in other parts of the economy. Preliminary data also suggests some continued momentum at the start of the second quarter, with output rising 0.1% in April, led by mining, oil and gas, and finance industries. Consumer sentiment rebounded in late May from one of the lowest readings on record earlier in the month and long-term inflation expectations retreated as concerns about the economy eased after the rollback of China tariffs. In the wake of Nvidia Corp.'s latest earnings report and upbeat sales forecast, the US government's GDP report also underscored the locomotive power of the artificial intelligence boom. Business investment in computers and other information processing equipment contributed a record 1.01 percentage points to first-quarter GDP. Europe European firms in China are the most pessimistic about growth prospects since 2011, underscoring the challenges of doing business in the world's second-largest economy despite recent government efforts to address some complaints. Some 29% of respondents were downbeat on the outlook for their sector over the next two years, according to an annual report by the European Union Chamber of Commerce in China. Germany's inflation rate dropped to 2.1% in May, slowing less than expected and highlighting lingering risks as the European Central Bank prepares to cut rates again. The data follow reports from Italy and Spain, where inflation eased to just below 2%, supporting the case for borrowing costs to be lowered further. Meanwhile, France said consumer price rose just 0.6% from the previous year. Europe is gradually adding gas to its depleted storage sites despite seasonal works at production facilities across the globe. In addition, overall demand for liquefied natural gas in Asia remains weak, which is a relief for European buyers that compete for the same fuel. Asia For decades, Asia's export powerhouses had a simple financial strategy: Sell goods to the US, then invest the proceeds in American assets. That model is now facing its biggest threat since the 2008 global financial crisis as Donald Trump tries to remake global trade and the US economy — upending the logic behind $7.5 trillion of investments from Asia. Some of the world's biggest money managers say an unwind is just getting started. India's economy grew at a faster pace than analysts expected, driven by some pick up agricultural activity and investments. While India retains its title as the world's fastest-growing major economy, the annual growth rate marks a notable slowdown from the 8% average seen in recent years — the pace needed by Prime Minister Narendra Modi to achieve his ambitious goal of making the country a developed nation by 2047. Emerging Markets Brazil's consumer prices rose less than forecast in early May, fueling bets that the central bank will halt its cycle of interest rate hikes while keeping its monetary policy restrictive going forward to tame inflation. World Japan lost its position as the world's largest creditor nation for the first time in 34 years, giving up the title to Germany despite posting a record amount of overseas assets. Japan's status as the world's biggest net-creditor nation was a consequence of decades of current account surpluses that saw Japanese investors and companies load up on holdings abroad. New Zealand lowered rates for sixth straight meeting. South Africa, the Bank of Korea, Mozambique and Eswatini also cut. Hungary, Israel, Uruguay, Guatemala and Tunisia kept borrowing costs unchanged. --With assistance from Nazmul Ahasan, Ruth Carson, Rebecca Choong Wilkins, William Horobin, Masaki Kondo, Diana Li, Lucille Liu, Matthew Malinowski, Elena Mazneva, Prateek Mazumdar, Andrew Rosati, Anup Roy, Augusta Saraiva, Zoe Schneeweiss, Randy Thanthong-Knight, Erica Yokoyama and Jana Randow. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? How Coach Handbags Became a Gen Z Status Symbol AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-05-2025
- Business
- Yahoo
Charting the Global Economy: US GDP Falls on Larger Trade Hit
(Bloomberg) -- The US economy contracted slightly to start the year, largely reflecting a bigger tariff-related trade hit but also a larger downshift in household spending growth than first estimated. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months The Economic Benefits of Paying Workers to Move Where the Wild Children's Museums Are In contrast, an export surge help drive the Canadian economy in the first quarter as businesses accelerated shipments ahead of higher US duties. Gross domestic product in India rose at a stronger-than-forecast 7.4% pace. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: US & Canada The US economy shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially reported. The economy's primary growth engine — consumer spending — advanced 1.2%, down from an initial estimate of 1.8% and the weakest pace in almost two years. Meantime, net exports subtracted nearly 5 percentage points from the GDP calculation, slightly more than the first projection and the largest on record. A strong jump in tariff-driven exports fueled Canada's growth at the start of this year, offsetting domestic weakness in other parts of the economy. Preliminary data also suggests some continued momentum at the start of the second quarter, with output rising 0.1% in April, led by mining, oil and gas, and finance industries. Consumer sentiment rebounded in late May from one of the lowest readings on record earlier in the month and long-term inflation expectations retreated as concerns about the economy eased after the rollback of China tariffs. In the wake of Nvidia Corp.'s latest earnings report and upbeat sales forecast, the US government's GDP report also underscored the locomotive power of the artificial intelligence boom. Business investment in computers and other information processing equipment contributed a record 1.01 percentage points to first-quarter GDP. Europe European firms in China are the most pessimistic about growth prospects since 2011, underscoring the challenges of doing business in the world's second-largest economy despite recent government efforts to address some complaints. Some 29% of respondents were downbeat on the outlook for their sector over the next two years, according to an annual report by the European Union Chamber of Commerce in China. Germany's inflation rate dropped to 2.1% in May, slowing less than expected and highlighting lingering risks as the European Central Bank prepares to cut rates again. The data follow reports from Italy and Spain, where inflation eased to just below 2%, supporting the case for borrowing costs to be lowered further. Meanwhile, France said consumer price rose just 0.6% from the previous year. Europe is gradually adding gas to its depleted storage sites despite seasonal works at production facilities across the globe. In addition, overall demand for liquefied natural gas in Asia remains weak, which is a relief for European buyers that compete for the same fuel. Asia For decades, Asia's export powerhouses had a simple financial strategy: Sell goods to the US, then invest the proceeds in American assets. That model is now facing its biggest threat since the 2008 global financial crisis as Donald Trump tries to remake global trade and the US economy — upending the logic behind $7.5 trillion of investments from Asia. Some of the world's biggest money managers say an unwind is just getting started. India's economy grew at a faster pace than analysts expected, driven by some pick up agricultural activity and investments. While India retains its title as the world's fastest-growing major economy, the annual growth rate marks a notable slowdown from the 8% average seen in recent years — the pace needed by Prime Minister Narendra Modi to achieve his ambitious goal of making the country a developed nation by 2047. Emerging Markets Brazil's consumer prices rose less than forecast in early May, fueling bets that the central bank will halt its cycle of interest rate hikes while keeping its monetary policy restrictive going forward to tame inflation. World Japan lost its position as the world's largest creditor nation for the first time in 34 years, giving up the title to Germany despite posting a record amount of overseas assets. Japan's status as the world's biggest net-creditor nation was a consequence of decades of current account surpluses that saw Japanese investors and companies load up on holdings abroad. New Zealand lowered rates for sixth straight meeting. South Africa, the Bank of Korea, Mozambique and Eswatini also cut. Hungary, Israel, Uruguay, Guatemala and Tunisia kept borrowing costs unchanged. --With assistance from Nazmul Ahasan, Ruth Carson, Rebecca Choong Wilkins, William Horobin, Masaki Kondo, Diana Li, Lucille Liu, Matthew Malinowski, Elena Mazneva, Prateek Mazumdar, Andrew Rosati, Anup Roy, Augusta Saraiva, Zoe Schneeweiss, Randy Thanthong-Knight, Erica Yokoyama and Jana Randow. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? How Coach Handbags Became a Gen Z Status Symbol AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox ©2025 Bloomberg L.P.
