PayNearby and Protean team-up on ONDC for easy credit access
Mumbai, 10th Sept, 2024: In a significant move to enhance credit access, PayNearby, India’s leading branchless banking and digital network is leveraging the Open Network for Digital Commerce (ONDC) to make credit services more accessible and affordable for last-mile borrowers. This new credit marketplace is built in partnership with Protean eGov Technologies Limited.
In this integration, Protean will serve as an ONDC technology service provider, facilitating the availability of credit for last-mile borrowers across the country through PayNearby’s extensive Distribution as a Service (DaaS) network. With over 12+ lakh active PayNearby outlets, the integration aims to broaden credit access across Bharat for individuals and small business owners in remote areas. Protean will aggregate multiple Loan Service Providers (LSPs) onto a single platform, providing citizens and businesses with convenient and affordable options. By integrating smart data modelling and frameworks like the Account Aggregator (AA), the initiative will offer credit scoring and tailored solutions for thin-file and new-to-credit customers. This will significantly enhance the ability of formal institutions to extend credit to rural and underserved populations.
Commenting on the launch, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “This integration with Protean through the ONDC Network will revolutionise how credit is accessed and delivered in Bharat. By offering formal credit options and tailored products, we are committed to providing our retail partners and customers with viable financing solutions. Our goal is to streamline the lending process, ensuring quick and easy credit access for all.”
Adding to this, Mr. Suresh Sethi, Managing Director and CEO, Protean eGov Technologies Limited said, “Bharat still has a large population outside the formal credit ecosystem and we firmly believe that consent-based data sharing through Account Aggregator will digitally empower these individuals to access credit using their own transactional history. By bringing together Account Aggregator, the data DPI, and the ONDC powered open network, coupled with PayNearby’s last mile reach through physical touchpoints, we intend to enable universal access to credit for underserved borrowers. Protean has been at the forefront of building Digital Public Infrastructure (DPI) and population scale e-governance solutions for the citizens, and our collaboration with PayNearby marks another significant step in the direction of creating a more democratic and inclusive financial ecosystem.”
Commenting on the development, Thampy Koshy, Managing Director & CEO, Open Network for Digital Commerce, said, “At ONDC, we are dedicated to empowering individuals by providing accessible and affordable financial solutions. This new credit marketplace, developed in collaboration with PayNearby and Protean eGov Technologies, marks a significant advancement towards this objective. By leveraging ONDC’s open network and integrating advanced data frameworks, we are enhancing credit accessibility for underserved and rural populations. This initiative supports economic growth and promotes financial inclusion across Bharat.”
One of the main focus areas of the government-backed ONDC network is to enable loan transactions for small business owners. This initiative will support MSMEs and individuals by providing them with viable credit options, thus fostering economic growth and financial stability in underserved regions. As part of the product offering, the partnership will provide credit of up to ₹4 lakhs, available for both salaried and self-employed applicants. Applicants need to provide KYC documents along with their bank statements, and the service is open to individuals aged 21 and above.
The loans are accessible to both existing bureau customers and new-to-credit customers, ensuring wide-ranging benefits.
