A new UPI-based Credit As A Service product is available for banks from Zeta

The product leverages the network to speed up the release of credit in India and is based on NPCI’s credit line on UPI scheme.

Zeta anticipates that by 2030, this scheme’s transaction volumes will have surpassed $1 trillion.

Zeta, which was founded by Bhavin Turakhia and Ramiki Gaddipati, provides financial institutions with an omni stack platform for managing fraud and risk, processing and issuing debit and credit cards, and lending.

Zeta, a unicorn in banking technology, has launched a digital credit-as-a-service solution for banks. The product leverages the network to expedite the issuing of credit in India and is based on NPCI’s credit line on UPI scheme.

The company predicts that by 2030, the scheme’s transaction volumes will surpass $1 trillion. With its solution, it hopes to take 50% of this market and assist banks in swiftly developing and introducing credit products.

“Credit Line on UPI has hit a home run for banks by completely changing the discovery, access, and cost mechanics of retail lending,” stated Ramki Gaddipati, CEO APAC & Global CTO, Zeta.

According to Gaddipati, the cost of Zeta’s new offering would change based on the particular services that each bank needs.

“We saw UPI volumes put a strain on core banking systems,” he continued. We expect comparable Credit Line volumes on UPI in the near future, requiring a populace-wide banking infrastructure that can handle hundreds of millions of credit accounts.

Zeta, which was founded in 2015 by Gaddipati and Bhavin Turakhia, provides financial institutions with an omni-stack platform for managing fraud and risk, processing and issuing debit and credit cards, and lending.

Zeta’s cloud-native, next-generation core banking and payments platform powers its extensive services and technology stack, which enables banks to manage digital credit operations from originations to collections. This is known as its digital credit-as-a-service offering.

Pre-integrated technologies to speed up launch processes, packaged services to improve efficiency in operations, and a variety of product blueprints, including EMI loans, merchant loans, and agricultural loans, will also be included in the offering. It will also provide regulatory reporting, compliance, and operations capabilities in addition to process consulting support for integrating Credit Line on UPI with current bank systems.

In contrast to a loss of INR 20.7 Cr in FY22, the company declared a profit after tax (PAT) of INR 21.94 Cr in the fiscal year 2022–2023 (FY23).

The fintech unicorn based in Bengaluru had an increase in income from operations of about 33% to INR 816.20 Cr in FY23, up from INR 615.05 Cr in FY22.

Zeta became a unicorn in May 2021 after raising $340 million in total capital with a $250 million funding round headed by Masayoshi Son’s SoftBank. Among its supporters are well-known companies like Mastercard, Sodexo, and Softbank Vision Fund.