Karnataka Bank has announced a significant development in the world of banking and digital commerce. The bank will be the first to offer personal loans through the ONDC (Open Network for Digital Commerce) platform. This move positions Karnataka Bank as a pioneer in integrating with this innovative network.
What is ONDC?
ONDC is a digital network designed to democratize access to services and products. It provides a standardized platform that connects buyers and sellers across various applications, making transactions more seamless and efficient. With this new integration, Karnataka Bank is bringing its personal loan services to this expansive network.
How It Will Work
Initially, Karnataka Bank will offer personal loans through buyer apps on the ONDC network. This service will first be available to the bank’s existing customers. By leveraging ONDC, the bank aims to provide a more streamlined and accessible loan application process.
Statements from the Bank’s Leadership
Srikrishnan H, Managing Director and Chief Executive Officer of Karnataka Bank, expressed enthusiasm about this new venture: “This is yet another big step in democratizing credit. Karnataka Bank is proud to be the first bank to integrate into ONDC’s rails. We are excited to innovate and work closely with their ecosystem, evolve products and services, and contribute to building India’s digital public infrastructure.”
Sekhar Rao, Executive Director of Karnataka Bank, added: “We are excited to be an early adopter of ONDC for financial services. The standardised protocols of ONDC enable great convenience in connecting lenders to multiple buyer apps, unlocking huge potential. Customers will now have more choices with better price discovery.”
ONDC’s Vision
T Koshy, MD and CEO of ONDC, shared his thoughts on the initiative: “ONDC’s mission is to democratize financial services in India by leveraging technology to create networks that enable the low-cost distribution of financial products. We are building a technological environment that encourages innovation in financial products in a controlled and responsible manner.”
Koshy further highlighted the significance of Karnataka Bank’s move: “Karnataka Bank’s initiative is a perfect example of how the ONDC network can empower both financial institutions and consumers, marking a significant milestone in our journey towards a more accessible and equitable financial ecosystem in India.”
What This Means for You
For Karnataka Bank’s customers, this means an easier and more flexible way to access personal loans. As ONDC grows, it is expected to offer even more financial services and products through its network, making it a valuable tool for both consumers and financial institutions. This development is a step forward in making banking services more accessible and efficient for everyone.
