The Open Network for Digital Commerce (ONDC) is gearing up to expand its financial services portfolio by launching insurance and mutual fund products within the next two months. This move marks a significant step in ONDC’s mission to offer a comprehensive range of digital financial solutions to its users.
ONDC’s Upcoming Financial Offerings
According to reports from the Economic Times, ONDC’s expansion into financial services will include a variety of products, with insurance and mutual funds being the first to roll out. The mutual fund offering is expected to go live as early as next month, while other insurance products are set to follow shortly after.
ONDC CEO T Koshy confirmed the network’s plans, stating, “We have deployed a Marine app, one insurer is already on board, and two more are in the pipeline. For health insurance, we are live, but our partner currently lacks a license. Motor insurance should be available within the next month, and mutual funds will go live next month as well. Our initial goal is to achieve 100-200 transactions.”
Credit Card Offerings on the Horizon
In addition to insurance and mutual funds, ONDC is exploring the launch of credit card services in collaboration with Mastercard. Although a specific launch date has not been announced, ONDC’s senior vice-president for financial services, Hrushikesh Mehta, revealed that Mastercard has volunteered to help develop the protocols for the credit card rollout.
Mehta explained, “We have a community volunteer programme where companies can assist in building protocols. Mastercard has now come forward to support the development of credit card protocols for the network.”
Partnerships for Digital Loans
On the same day as the announcement of these new offerings, ONDC also revealed partnerships with nine lending service providers, including Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby. These collaborations will enable ONDC to offer digital loans to users within just six minutes, further expanding the network’s suite of financial services.
A Year of Strategic Growth
The introduction of insurance products comes nearly a year after ONDC first announced its intentions to delve into financial services, including personal loans, small and medium-sized business (SMB) loans, and mutual funds. This expansion aligns with ONDC’s broader strategy to become a one-stop platform for various financial needs.
Last month, ONDC’s Chief Business Officer (CBO), Shireesh Joshi, outlined the network’s roadmap for launching credit services. He emphasized that ONDC is now ready to invite more credit providers to join the network, with a focus on hitting specific targets before rolling out the service to the general public.
ONDC’s Rapid Expansion
These developments come at a time when ONDC is experiencing rapid growth. In July 2024 alone, the network facilitated over 12 million monthly e-commerce transactions, with 4.4 million of those stemming from the mobility sector. ONDC has also expanded its presence across India, now operating in over 611 cities with participation from 111 network members.
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