The Aadhar architect, Nandan Nilekani, on Wednesday said a new technology in the making called ‘open credit enablement network (OCEN)’ would democratise lending and enable small borrowers to avail funds easily. “The unified payments interface (UPI) was a protocol for payments, OCEN allows you to connect lenders to marketplaces,” Nilekani said at the Global Fintech Fest.
According to a blog on technology think tank iSPIRT, OCEN is a common language for lenders, marketplaces to utilise and create innovative, financial credit products at scale. It further said some of the top lenders in the country like State Bank of India (SBI), HDFC Bank, ICICI Bank, IDFC First Bank and Axis Bank would soon be in a state of readiness to usher in OCEN.
Nilekani said OCEN would have a big impact, because it would truly democratise credit. “If we need to revive economy, we need to lubricate small businesses with the capital,” he said, adding, “I do hope this will get accelerated in coming month and years.”
Explaining the application of OCEN, he said, “For example, if you are a small company which provides tax uploading facility to its customers, you can also provide credit to them. You can embed the details using this protocol and operate with lenders. The lenders can use their underwriting tool and give a loan.”
The Infosys chairman and co-founder also spoke on the launch of UPI AutoPay. National Payment Corporation of India (NPCI) launched the functionality of UPI AutoPay for recurring payments on Wednesday. With this new facility introduced under UPI 2.0, customers will enable recurring e-mandate for payments such as mobile bills, electricity bills, etc. “Introducing UPI AutoPay on UPI is a testament of continuous innovation in the digital payments space.” “This was also one of the key recommendations of the RBI Committee on Deepening of Digital Payments, which I chaired,” he added.
He also said Covid-19 had provided acceleration to digitisation. He emphasised on the use of creating health infrastructure. A lot of work in the area of healthcare can be done through technology, he added.