Streamlining Consumer Credit Operations with Technological Evolution
Consumer credit is the debt taken to buy goods and services. It can be in the form of any kind of personal loan or credit card. In simple words, it is an unsecured debt taken to acquire various commodities. However, housing loans or debt taken to buy plots do not fall under this category. These credits are provided by banks or financial institutions to help borrowers purchase everyday merchandise instantly. The interest is charged over the period to repay the credited amount. In the case of consumer credit, there is no requirement to carry cash while shopping. Individuals can choose payment plans that deliver access to products and services quickly rather than saving to cover the amount of that particular product. Many credit card retailers and organizations give special offers, rewards, and perks on the purchase of large items. Sometimes they also offer cashback on it. Role of digitalization and AI in consumer credit Integrating technology into consumer lending is essential for buildi