Credit and Insurance Services Offered by Aditya Birla Capital Are Now Available on ONDC

Nitin Konde, Varun Bhardwaj

Dec 25, 2024 — 2 min read

Aditya Birla Capital Offers Credit and Insurance on ONDC

According to reports, Aditya Birla Capital has declared that all three of its primary services—lending, insurance, and investments—will be integrated on the Open Network for Digital Commerce (ONDC). Aditya Birla Capital Ltd. (ABCL) asserts that this makes it the first financial services firm to incorporate all three of the main products on the network supported by the government. According to the media reports, ABCL stated that the action is intended to improve user experience and make it easier to access financial goods on the site. India's digital public infrastructure has grown quickly in recent years, establishing networks that are open and compatible with one another.

According to ABCL CEO Vishakha Mulye, the company's partnership with ONDC will enable it to reach every corner of "Bharat" and meet the financial requirements and goals of customers who might not have had access to official credit, insurance, or investment possibilities in the past. Thampy Koshy, CEO of ONDC, commented on the collaboration, saying that Aditya Birla Capital's integration demonstrates their dedication to democratising financial products. This action enhances ONDC's financial inclusion aim while broadening its product options.

Giving Wider Variety and Options to Customers

As part of the partnership, ABCL's goods will be accessible on ONDC through a number of buyer apps, allowing consumers to obtain financial products straight away without having to download extra software. However, the network will be able to expand its fintech play by bringing on new participants. It is important to remember that ONDC has long been developing the infrastructure for investments, insurance, and credit. It collaborated with ABCL as part of the credit integration early pilot.

Aditya Birla Health Insurance and Aditya Birla Sun Life AMC, two of ABCL's major businesses, have also implemented mutual fund and health insurance products on the state-backed network. Just one week has passed since CEO Koshy stated that the volume of transactions on ONDC has increased by almost three times since December of last year. He also stated that the network intends to increase the volume by an additional seven to eight times by December of 2025.

Growing Network of ONDC

ONDC, an open network for the exchange of goods and services via digital networks, was introduced in 2021. It says it has 200 apps and is available online in more than 611 cities. A working committee including fintech industry experts was formed by ONDC in June to design a methodology for the integration and onboarding of sellers and industry participants. Later, in August of this year, ONDC launched its first fintech products in collaboration with Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, and other companies. In collaboration with online trading and investment platform Appreciate and asset management company (AMC) Nippon India Mutual Fund, the platform also saw its maiden mutual fund transaction in October.