Have you ever wondered why most banks in India prefer CIBIL over CRIF High Mark? Does this mean CRIF is less reliable, or are banks just playing it safe? 
A few key reasons explain why most banks and financial institutions prefer CIBIL (TransUnion CIBIL) over other credit reporting agencies:
The Evolution of CIBIL’s Competitor’s Market Presence: CIBIL has been in operation since 2000 making it the oldest credit bureau in India. Their long-standing relations with financial institutions in India has made them the default credit reporting agency for most banks. At the same cime, it initial trust and familiarity make it the go to selection for credit evaluation.
Collection of Holistic Market Data: CIBIL elongated history and robust client base ensured that lenders capture a broader spectrum of credit behavior as they were more inclined to extend more loans, credit cards, or other debt related facilities. In comparison, CRIF High Mark may not have as wide a database, especially in certain sectors like credit cards.
Business Pointers that the Lender Prefers: In India, numerous private banks and large lenders have maintained relationships with CIBIL. Thus, they continue to use it as the sole source of credit scoring information. Some banks also use CRIF High Mark on a limited basis, but most CIBIL scores are the standard due to agreements and policies in place.
Familiarity with Scoring Model: Almost all the banks deal with and understand CIBIL’s scoring model (300-900). This provides a connected approach to granting loans and establishing credit score thresholds which greatly aid in loan approvals. Though CRIF provides a score, it may not be understood by most of the lenders. Thus, the safely accepted figure is CIBIL.
Assessment of Credit Decisions: There are several attributes to assess creditworthiness such as the CIBIL score. Most of the banks, since they are CIBIL-centered, analyses these scores for loan approvals, credit card distributions, and interest rates allocation. Credit disbursement becomes a challenging exercise due to differences in scoring models between CIBIL and CRIF. Thus, the lenders and service providers risk blend on the CIBIL score, after all CIBIL is the most dominant bureau in the industry.
Regulatory Compliance: CIBIL values the performance of certain institutions and businesses, as well as assesses their credibility. To ensure fairness and the credibility of the evaluation process, they work directly with the Reserve Bank of India.
Different lending platforms do consider CRIF and experian but CIBIL remains the undisputed leader due to its coverage as well the factors it has while calculating your score. Even though the banks and financial institutions refer to CRIF and Experian, their decisions are always solely based on CIBIL
I guess CRIF tried to be relevant in the credit score cap just like Rupay but could not capitalise on its nationalism tag because financial institutions are a little reluctant to trust new players by ignoring the established institution like transunion CIBIL.
I guess CIBIL will continue to remain the most trusted credit score system in India.
I see, got your point.