Zeta Launches Digital Credit as a Service for Banks in India

Mumbai, May 10, 2024: Zeta, a provider of next-gen banking technology to financial institutions globally, announced the launch of its Digital Credit as a Service offering for banks. Zeta’s offering is underpinned by NPCI’s Credit Line on UPI scheme – which harnesses the power of the UPI network to turbo-charge credit issuance in India.  Zeta estimates that the transaction volume on this scheme will exceed $1 Trillion by 2030 and aims to capture 50% of this market opportunity with its end-to-end solution that can help banks conceive and rapidly launch multi-form credit products.

India’s financial landscape today presents a unique dichotomy. TransUnion CIBIL has reported that more than 160 million Indians remain underserved by traditional credit channels. At the same time, banks have pre-approved credit for millions of customers but are unable to distribute loans to them efficiently. Unlike traditional loans, credit products that leverage Credit Line on UPI offer on-demand access through any PSP payment app leveraging a fully digital-native experience, allowing consumers to borrow precisely how much they need, when they need it.

Calling the Credit Line on UPI “a credit distribution superhighway”, Ramki Gaddipati, CEO APAC & Global CTO, Zeta, said, “This is a once-in-a-generation opportunity to change the credit inclusion landscape in India. By delivering credit at the point of need, Credit Line on UPI has hit a home run for banks by completely changing the discovery, access, and cost mechanics of retail lending. We’re excited to enable banks to serve the credit needs of millions of customers in this completely real-time, digital-native ecosystem.”

At the same time, Mr. Gaddipati highlighted the need for the banking ecosystem to prepare for hockey-stick growth in Credit Line on UPI similar to what India experienced when UPI was first launched. Sounding a note of caution on banks’ preparedness for Credit Line on UPI volumes, he added, “We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on Credit Line on UPI before long, and this calls for population-scale banking infrastructure capable of processing 100s of millions of credit accounts. We have pre-architected our solution for this from Day 1.”

With a vision of democratizing access to banking, Zeta has built one of the most formidable teams in banking technology over the last decade and spent over $360 Million in building the most modern next-gen banking platform globally. Its Digital Credit as a Service offering provides a complete services and tech stack powered by Zeta’s cloud-native & next-gen core banking & payments platform that will enable banks to manage everything from originations to collections digitally.

Zeta’s Digital Credit as a Service offering includes:

• Pre-integrated systems to increase launch velocity (origination, issuance, collection, etc)
• Pre-bundled services to reduce operational overhead (customer service, operations, etc)
• Wide range of product blueprints (EMI loans, merchant loans, agricultural loans, etc)
• Out-of-the-box capabilities for operations, compliance, and regulatory reporting
• Process consulting support to integrate Credit Line on UPI with existing bank systems
• End-to-end program management to guide banks at every stage of the journey

The offering, which completely reimagines credit distribution as a modern digital-native journey, co-exists with a bank’s existing products and systems with minimal disruption to ongoing systems & processes while delivering:

• Swift go-to-market with a ready-to-launch and seamlessly pre-integrated solution
• Robust compliance with credit products that are compliant with the latest regulatory standards out-of-the-box
• Customizable credit products covering the full range from secured loans backed by tangible assets to unsecured financing options for personal and business needs
• Effortless integration that ensures a risk-free launch path
• Digital-first experience allowing users to discover and manage credit digitally
• Population-scale architecture to ensure zero scalability and downtime issues