How Open Finance Changes the Way We Borrow, Insure, and Invest
Protean eGov Technologies
Protean (formerly NSDL eGov) is a publicly listed population scale technology leader building Digital Infrastructure
For a long time, the search for a loan or any financial product has been tightly controlled or limited.
I can’t help but recount the broken process of getting my first home loan just two-three years ago. Back then, lenders and their so-called “loan aggregators’' had built towering, isolated silos, each trapping my financial information within their walled gardens. Seamless communication between platforms was non-existent. Anyone who has ever looked for loans all over town will know how long and annoying this process can be. Borrowers are required to submit all the documents multiple times because every lender has their own loan processing requirements.
The aggregator and lender platforms claimed to offer “choice,” but in truth, they selectively presented options that aligned with their objectives, restricting true discoverability. In essence, the loan options they provide are exclusively from their affiliated partners. I couldn’t explore loans without these gatekeepers and their predefined parameters unless I approached them individually, which would take a lot of time.
In fact, early February 2024, the Reserve Bank of India (RBI’s) Executive Director, P Vasudevan, pinned hopes on `frictionless credit’ scaling and becoming the next digital public infrastructure.
But today—finally—the landscape is different. Open Financial protocols are tearing down these restrictive walled gardens, bridging the gaps between once-isolated lenders. Secure and transparent data sharing unlocks unparalleled freedom and choice. Now, it is possible to explore financial products on my terms!
After food, groceries, fashion, and electronics segments, the government-backed Open Network for Digital Commerce (ONDC) is now slowly and steadily adding an array of financial services, including personal and SMB loans, insurance (car, health and marine), and mutual funds, on the platform.
With the power of Open Finance, the era of agenda rigging and false loan choice is over.
Open finance will connect borrowers and investors with a wider range of financial institutions and fintech companies by bringing financial services institutions and fintech companies onto the open network as buyer and seller applications.
The winds of change are blowing. Open finance standards and technological innovations are bridging gaps between once-disparate systems.
By January 2024, Protean designed ONDC’s central technology, the “gateway,” had become a bustling hub of activity, facilitating a staggering 11.2 million searches for diverse products and services. This impressive feat was achieved while supporting a network of 107,000 merchants, effectively bridging the gap between consumers and a vast array of offerings. Essentially, Protean's gateway had transformed ONDC into a powerful Open Network, enabling individuals to explore and compare options seamlessly, ultimately streamlining their efforts of product discovery.
In 2023, leveraging the Open Network for Digital Commerce (ONDC) principles, Protean and PayNearby joined forces to enable seamless discovery of loans and help move to a more inclusive financial system in India. Protean, a leader in open networks and financial technology, acts as the ONDC technology provider, while PayNearby’s vast branchless banking network brings accessibility to a large section of the underserved population. This partnership aims to make credit more affordable and accessible, especially for underserved communities, marking a significant step towards open finance for the masses.
Think:
So in effect, this partnership is a major step towards financial inclusion in India, bringing the benefits of open finance to the masses.
Protean will serve as an ONDC technology service provider that facilitates availability of credit for last mile borrowers across the country through PayNearby’s well entrenched Distribution as a Service (DaaS) network.
Once launched, the marketplace will also allow for easy discovery of various lending products at affordable pricing to its borrowers.
Smart data modelling and use of frameworks like Account Aggregator (AA) will ensure credit extension to thin-file/new-to-credit underserved citizens, driving breakthroughs in the way India and Bharat accesses credit.
Protean will also connect multiple lenders onto a single platform, giving citizens and businesses the convenience of choice and affordability. How does it do it? By aggregating information to the ONDC network, Protean’s universal adaptor UniConnect simplifies the lending journey.
UniConnect acts as a bridge, seamlessly connecting you to any network you need, regardless of its purpose. This user-friendly platform offers robust security and effortless integration with your existing systems, so you can access the data you need, from various sources and across different sectors, with minimal hassle. With UniConnect, navigating the Open Network landscape becomes smooth and efficient, empowering you to make informed decisions.
Besides facilitating the information flow, frameworks like the Account Aggregator (AA) enhance credit scoring for accurate assessment of new-to-credit (NTC) and thin-file segments, enabling tailored credit to a wider audience.
For borrowers, credit shopping through a comprehensive marketplace will give them the choice to pick the interest rate and repayment terms as per their needs. By comparing offers from multiple lenders on one platform, you can find the loan that best suits your needs and budget.
Open finance protocols, like ONDC-Financial Services, unlocks the gates to a vastly more democratic landscape, where your search becomes an impartial journey toward the optimal solutions. Without external parties filtering or restricting options, you can finally experience financial product exploration as it should be - completely equitable and transparent.
How Open Finance Supercharges Financial Inclusion in India
Open Finance isn’t just a technical architecture; it’s a game-changer for financial inclusion in both urban and rural India. Here’s how it enables frictionless financial services for all:
By empowering both urban and rural citizens with greater access to financial services, the Open Finance paves the way for a more inclusive and prosperous India.
Growing Network
Join the Open Finance Revolution: Protean’s Open Finance is live with more network players!
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Discover and compare financial products freely on the revolutionary open finance platform. Gone are the days of limited options and hidden agendas – now, you have the power to explore lending and financial products with complete transparency and independence.
Join the growing network:
As a borrower: Protean is now onboarding more players, allowing you to explore and compare financial offerings tailored to your needs.
Joining forces: PayNearby , a leading branchless banking network, is the first partner on the buyer side, expanding reach and accessibility.
Early adopters: ONDC’s first cohort includes EasyPay and PlaceOrder (buyer apps) and DMI Finance and Karnataka Bank (lenders).
Experience the freedom and transparency of open finance with Protean – start your impartial exploration today!
One-Stop Shop for Open Finance Protocols: How Protean Simplifies Your Journey
Joining the Open Finance Networks can seem daunting, but Protean makes it easy. With just one integration, you gain access to the entire network of participants, eliminating the need for multiple agreements and integrations with individual lenders.
Here’s how Protean simplifies your entry:
Joining the Open Finance shouldn’t be a complex endeavor. Protean empowers you to integrate seamlessly through two distinct layers, catering to your specific needs and technical capabilities:
Layer I: Plug and Play with Open Finance LSP Adapter Services
Ideal for businesses seeking a swift and hassle-free entry. Layer I offer pre-built connectors that integrate seamlessly with your existing systems. This layer facilitates data exchange with ONDC-Financial Serivces participants, minimizing development efforts and accelerating your market launch. Think of it as a ready-made solution for connecting to the network instantly through your existing tech stack.
Layer II: Deep Dive with PWAs and SDKs - Craft Your Unique Open Finance Experience
Do you want to create your own user experience for joining Open Finance? Layer II offers that flexibility! Here’s how:
Think of PWA (Progressive Web App) as a special website that feels like an app. It lives on your website but works smoothly even offline, offering native app-like features. This means seamless integration and a familiar experience for your users.
SDK (Software Development Kit) is like a toolbox for developers. It provides pre-built code elements that plug into your existing app or website, allowing you to connect with the Open Finance network easily. No need to reinvent the wheel!
Layer II empowers you to:
Remember, Protean is with you every step of the way. We offer support and guidance throughout your Open Finance journey, ensuring a smooth and efficient integration process, regardless of which layer you choose.
So, if you’re looking for ultimate control and customization, Layer II with PWAs and SDKs is your perfect fit!
Regardless of your chosen layer, Protean remains your steadfast partner. We provide comprehensive support and guidance throughout your Open Finance journey, ensuring a smooth and efficient integration process.
Now, the choice is yours! Select the layer that aligns best with your technical resources and desired level of customization and embark on your Open Finance adventure with confidence.
- Authored by Bruhadeeswaran R
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