ONDC to open its platform for fintech services like credit, insurance

The Open Network for Digital Commerce (ONDC) is set to expand its services to include financial offerings, such as credit, insurance, investments, and gift cards. This move comes after the platform successfully ventured into sectors like food, grocery, fashion, travel, and electronics.

According to industry insiders, the new financial features will go live in a few weeks.

Over 65 entities have shown interest in joining the network as either buyer and seller applications (lending institutions) or technology service providers. More than 20 entities have already begun their integration journey.

Companies that have initiated integration directly or through technology service providers include Tata Digital, India Lends, Easy Pay, DMI Finance, Aditya Birla Finance, and Karnataka Bank.

“In credit, ONDC is starting with personal loans and GST-based loans to individuals and sole proprietors, respectively. The API draft specifications for the same were released in early August for market feedback,” stated an official response from ONDC to an e-mail sent by Business Standard.

In insurance, ONDC is starting off with three products – health insurance, marine insurance, and motor insurance. In investments, it will commence with mutual fund investment offerings on the network.

The API specifications for both insurance and investments will be released in the coming weeks.

For mutual fund investments, ONDC is working with MFU (MF Utilities India) to onboard the asset management companies as seller applications.

ONDC is expected to start offering MFs from early next month, starting with the commission-paying regular plans of MF schemes. At present, most online MF distribution platforms offer commission-free direct plans.

“Technology integration is underway. As stated by ONDC, API specifications for MF will be released soon. If things go according to the plan, MFs can go live on the ONDC platform in the next couple months,” said Ganesh Ram, MD & CEO, MFU.

ONDC recently launched an “ONDC network gift card” for corporate gifting and employee engagement. The gift card is powered by RuPay network and can be loaded with a maximum amount of Rs 10,000. YES Bank and OmniCard have gone live as the first two issuers of the card, while several other banks and fintech platforms with RBI-assigned pre-paid licences are in line, said the official response from ONDC.

A consumer gift card offering was also launched last month with Spice Money as the buyer application and Vistaar (Earnest Data Analytics Private Ltd) as the seller application to facilitate consumer purchases of gift cards of 100+ brands.

According to media reports ONDC has so far, since inception, added 12 million orders, a majority of them have come from its mobility category. Food accounts for 65-70 per cent of its retail orders. The platform now has close to 150,000 merchants and has a presence in 180 cities.