India’s Open Credit Enablement Network (OCEN)

Embedded finance is fast growing as a game-changing opportunity for incumbents and new FinTechs alike. It is estimated to offer a market opportunity of over $7 trillion by 2030. Lending has not been the leading segment in embedded finance because of its complexity. However, emerging new digital business models that use plug-and-play tech enable businesses to easily manage and sell even highly regulated and relatively complex services such as lending as an embedded service.

New digital models set to optimize the Indian digital lending market with innovative products and services.

The digital lending market in India is expected to grow to $100 billion by 2023. A contributing factor is the untapped customer base of over 300 million Indians who have remained outside the formal credit market. Current rails for the flow of capital into this untapped market are broken. Recently digitized users such as small shop owners, farmers, traders, entrepreneurs of MSMEs, rural self-help groups, and gig economy workers are increasingly generating a digital transaction history that could be used to inform and build trust with financial institutions. However, the availability of appropriately sized, priced, and timed credit products is still not optimized.

Open Credit Enablement Network (OCEN) – A New Paradigm To Facilitate Credit Flow

IndiaStack brought the firs …