Algorithmic credit appraisal is not such a novel thing – it is already quite commonly used by banks in developed countries for retail credit, I think.
Payment banks (or aggregators like Bankbazaar) can add distribution strength to the algo credit products of traditional banks.
Traditional banks can also devise their own distribution through their mobile apps / websites / etc.
Both the costs related to credit appraisal and distribution can be significantly reduced this way. For this – everything will need to get electronic, first…. That is still another 5 years away, at the least….
How far algorithmic credit appraisal can be trusted is a different discussion 
Also, the assumption about “winner-takes-all” is quite false, I think….
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