Building on ONDC — Credit Solutions
In one of earlier posts, I described ONDC model in line with any business model having a supply and a demand side and ONDC’s value creation in the ecommerce transaction.
Extending the analogy in this post, we will talk about building credit solutions on ONDC. Do look at the illustration to understand the stakeholders in the lending ecosystem.
Lending ecosystem on ONDC will be an extension of the current models.
BNPL Solution — The buyer apps will be the distribution point for these retail unsecured low value loans on. The buyer aggregators will be able to provide these as financing options on their apps based on buyer’s history.
GST based financing — The seller apps will become the distribution channels for the GST based financing options for the sellers on the platform.
Now the key thing to understand is that these seem like very obvious solutions for the ecommerce market and hence plugging them would not be a challenge for the tech solution providers. Frankly, these can exist outside ONDC at this point
However what will be built differently on ONDC are the loans originated by the users.
Dedicated borrower (buyer) apps which act like a marketplace for the borrowers where the users profiles can be pre-built based on credit history, Aadhar and other KYC details (of course subject to consent).
ONDC protocols can will now be built to broadcast this borrower’s loan request on the open network where it will be received by multiple lenders (seller apps) at the same time. The fastest response over network and the loan rates will now define who grabs this loan asset.
Lets acknowledge that such platforms have been built in India (guess Paisa Bazar) but these are again platform driven models where the lenders have to exclusively participate to see the loan request and the rules are governed by the platform.
Get Aarti Nyayadhish’s stories in your inbox
Join Medium for free to get updates from this writer.
On ONDC on the other hand this will be an open request available for all lenders once they are ONDC compliant. (I don’t need to say this but ONDC is a set of protocols and not a platform so it will not set business level rules of the game.)
Technology Service Providers (TSPs) like eSamudaay will of course play a very crucial role in aggregating the ONDC solution. Do tune in to see what lies ahead.
