Algo360 Annual Performance Report – April 2020 to March 2021

Last calendar year was a significant year historically, with countries closing down and then bouncing back. While the shadow of Covid-19 continues to loom, the economy has shown signs of recovery. With the lockdown induced by the pandemic and the financial moratorium imposed by the Reserve Bank of India, a major shift has been observed in the spending, saving and other financial habits of customers.

The lockdown and social distancing measures have led to loss of livelihoods and incomes, heavily affected many industries and also disrupted transportation systems and supply chains. Even though the Indian Government has adopted various measures to revive the economy, the impact of Covid-19 will be seen in the months of the year 2021 as well.

From Algo360’s perspective, the year 2020 has seen a greater emphasis on alternative data, to augment (or even replace in some cases) old traditional data for understanding the financial behaviour of users and determining the associated credit risk. This is owing to the fact that there has been a lot of delay in financial reporting by Banks, NBFCs and other organizations. Alternate data goes beyond traditional methods and takes a more holistic view of a user’s behaviour and his relationship with credit.

The Algo360 Annual Performance Report is a concentrated, sample population based insight report that provides statistical information about Algo360’s consumer database across different financial domains.

For this study, a group of 95,000 users were evaluated across demographics, income groups and varied financial histories. These users have shown signs of improvement in the recent months of 2021, when India bounced back from the first wave of the pandemic and/or the users adapted to living in this pandemic affected world.

Leveraging this report can help individuals and institutes understand consumer behaviour over the year.

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