Nandan Nilekani launches open credit protocol network

www.livemint.com
3 min read
fairly difficult
At the Global Fintech Festival, 2020, Nandan Nilekani announced the launch of a new credit protocol infrastructure called the 'Open Credit Enablement Network (OCEN) protocol, which Indian Software Product Industry RoundTable (iSpirit) has built and worked over the past months
Nandan Nilekani, founding architect of Aadhaar and co-founder and non-executive chairman of Infosys Ltd, said India needs to democratise credit for small businesses, to ensure the revival of the economy, which has been hit by the ongoing covid-19 pandemic.

At the Global Fintech Festival, 2020 on Wednesday, Nilekani announced the launch of a new credit protocol infrastructure called the 'Open Credit Enablement Network (OCEN) protocol, which Indian Software Product Industry RoundTable (iSpirit) has built and worked over the past months.

Under these new credit rails, OCEN will act as a common language, connecting lenders and marketplaces to utilise and create innovative, financial credit products at scale.

Aggregators which will be using these APIs (Application Programing Interface) to embed credit offerings in their applications, and will be called 'Loan Service Providers', which will play a crucial role in democratizing access to credit, and lowering interest rates for customers.

iSpirit is partnering with key lenders such as State Bank of India, HDFC Bank Ltd., ICICI Bank Ltd., IDFC First Bank Ltd., Axis Bank Ltd. and Bajaj Finserv Ltd. for this new credit rail.

"…Apart from digitisation of the lending process, we have data stores through the Account Aggregator (AA) network, and for credit to move seamlessly to small businesses, lenders will need to have a common protocol. Just like what UPI did with payments. We are…
Shreya Nandi, Tarush Bhalla
Read full article