Northern Arc & Karnataka Bank team to fuel digital lending solutions

By Gloria Mathias

Karnataka Bank (KBL), a private sector bank, and Northern Arc Capital (“Northern Arc”), one of India’s diversified NBFCs and a financial services platform, have entered into a MoU, enabling the bank to offer customer-centric financial solutions to retail borrowers.

The nPOS, Northern Arc’s technology platform for co-origination, co-lending, and pool buy-out, aims to enable Karnataka Bank to seamlessly connect with multiple originators for loan origination, underwriting, disbursement, and collection, along with interactive dashboards, proactive nudges, and advanced reconciliation abilities.

This collaboration will allow banks to digitally onboard various NBFCs, lend significant amounts of money, and onboard a larger customer base because of their better consumer outreach.

Shri Srikrishnan H, Managing Director & CEO, Karnataka Bank, said, “Karnataka Bank’s arrangement with Northern Arc through the platform of NACL (nPOS) is very strategic considering our aspirations to partner with multiple Fintechs. We are looking at multiple areas to collaborate, and co-lending is a big focus to grow our Advances book. The relationship with Northern Arc will assist us in onboarding various NBFCs and ensuring last-mile integration beyond our branch serving areas.”

Ashish Mehrotra, CEO & MD of Northern Arc Capital, said, “We are delighted to partner with Karnataka Bank in their digital transformation journey. The nPOS platform will aim to enable the bank to accelerate its co-origination and co-lending partnerships with FinTechs and NBFCs. This strategic alliance underscores our commitment to facilitate credit to underserved and underbanked individuals and businesses and drive innovation within the financial industry by enabling banks to stay ahead within the rapidly evolving regulatory and digital landscape.”

Sekhar Rao, ED, Karnataka Bank, said, “Karnataka Bank is excited to announce its tech-enabled partnership with Northern Arc. This collaboration aims to enhance digital lending, risk management, and financial inclusion and to provide customers with innovative solutions. We look forward to delivering a seamless experience through this strategic alliance.”