The Open Network for Digital Commerce (ONDC) is preparing to expand its financial services offerings, with plans to launch insurance and mutual fund products within the next two months. The announcement reflects ONDC’s broader strategy to diversify its financial services portfolio, following its recent success in e-commerce.
According to ONDC CEO T Koshy, the mutual fund offering is scheduled to go live next month, with insurance products, including motor insurance, expected to follow shortly. The network has already deployed a Marine app for insurance and is collaborating with various insurers to broaden its offerings. ONDC aims to complete the initial phase with 100-200 transactions before fully rolling out these products.
In addition to insurance and mutual funds, ONDC is working on launching credit card offerings in partnership with Mastercard. While the exact timeline for the credit card launch is yet to be determined, Mastercard has committed to helping build the necessary protocols for the rollout. ONDC’s senior vice-president for financial services, Hrushikesh Mehta, noted that Mastercard’s involvement is part of a community volunteer program to develop and test new financial products.
Further enhancing its financial services, ONDC has announced partnerships with nine lending service providers, including Easypay, Paisabazaar, Tata Digital, and Invoicepe, to offer digital loans within six minutes. This rapid loan disbursement is expected to significantly streamline the borrowing process for users.
The launch of these new services aligns with ONDC’s broader vision of creating a comprehensive digital financial ecosystem. The network, which surpassed 12 million monthly e-commerce transactions in July, continues to expand its reach and impact in the digital financial sector.
ONDC’s efforts to roll out these services come almost a year after discussions about its potential financial service expansions began. The network’s chief business officer, Shireesh Joshi, previously indicated that ONDC was in the final stages of testing and preparing for a broader public release of its credit services.
As ONDC continues to scale its operations and enhance its service offerings, these new financial products are expected to play a crucial role in its growth strategy.
