Zeta launches ‘Digital Credit as a Service’ for banks in India

By Gloria Mathias

Zeta, a provider of next-gen banking technology to financial institutions globally, has announced the launch of its Digital Credit as a Service offering at its Democratizing Credit 2024.

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, which can help banks conceive and rapidly launch multi-form credit products.

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.”

Gaddipati highlighted the need for the banking ecosystem to prepare for hockey-stick growth in credit lines on UPI, like what India experienced when UPI was first launched. He added, “We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on credit lines 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.”

Zeta’s Digital Credit as a Service offering provides a complete services and tech stack powered by Zeta’s cloud-native, next-gen core banking and payments platform, which 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 Lines on UPI with existing bank systems
• End-to-end program management to guide banks at every stage of the journey