A New Data Sharing System Could Open Up Loans To Millions

The system, years in the planning, is scheduled to be formally introduced later on Thursday.

India plans to unveil a data sharing system that could revolutionize investing and credit, giving millions of consumers greater access and control over their financial records and expanding the potential pool of customers for lenders and fintech companies. Regulators agreed to allow banks, pension funds, tax authorities, insurers and other finance firms to pool together customer information -- once the user consents -- to make transactions smoother. If the system works, firms will be able access large amounts of data within seconds to assess the creditworthiness of a small business, recommend a wealth management product for an individual, or tailor an insurance policy for a family. The system, years in the planning, is scheduled to be formally introduced later on Thursday. It's an ambitious approach that combines privacy protection with credit reporting. Here's how it works: