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    ONDC Plans To Integrate Consumer-Facing Apps For Financial Services Offerings

    The Government-backed Open Network For Digital Commerce (ONDC) plans on integrating consumer-facing apps for financial services offerings, reported the Economic Times on June 17. According to the report, Tata Neu and Paisabazaar have been conducting early pilot studies for credit disbursals through the ONDC network.  Meanwhile, lenders like DMI Finance and Aditya Birla Finance have already integrated with the platform. The inclusion of consumer-facing platforms like Tata Neu and Paisabazaar will act as a source for customers.

    How Does It Work?

    According to ONDC senior vice president of financial services, Hrushikesh Mehta, credit on ONDC has started pilots recently with five LSPs (loan service platforms) and two lenders live on the network, including EasyPay, Tata Digital, Paisabazaar, Cliniq 360 and Invoicepe, with several more in the process of integrating. “The rails use multiple public digital goods to deliver a small-ticket loan in just six to ten minutes,” he added.

    According to sources accessed by ET, Customers seeking loans can apply on any ONDC-backed app like Tata Neu and get offers from multiple partner lenders within minutes, with the loan being sanctioned on the go. The network will be using the strength of the account aggregator framework to fetch banking details about the customer and underwrite the customer within minutes.  The network also eventually intends to venture into insurance and investments.

    ONDC is a government-backed set of protocols that aims to shift from a single platform model to a decentralized, interoperable network. It is supposed to resolve certain key problems present in the digital ecosystem, like market dominance by large corporations and limited competitiveness of new sellers. It plans to help sellers be present on multiple platforms while porting their market reputation as well. 

    The government-sponsored set of protocols seems intent on integrating all avenues of e-commerce in India. ONDC’s foray into financial services was first reported in September last year, including personal and business loans, insurance, and mutual funds.  

    Earlier this month, it was reported that e-commerce giant Flipkart would be offering food-delivery services through the network.

    The retail sector of ONDC saw an all-time high of 5 million orders in May, with 200,000 retail transactions in a single day during the month.

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    The post ONDC Plans To Integrate Consumer-Facing Apps For Financial Services Offerings appeared first on MEDIANAMA.

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