Zeta launches Digital Credit as a service product

The product is based on the credit lines on the UPI scheme, which was introduced by the Reserve Bank of India in September.

Calling the Credit Line on UPI “a credit distribution superhighway,"Ramki Gaddipati, CEO APAC & Global CTO, Zeta, said, “By delivering credit at the point of need, the Credit Line on UPI has hit a home run for banks by completely changing the discovery, access, and costmechanics of retail lending.”

Gaddipati highlighted the need for the banking ecosystem to prepare for hockey-stick growth in Credit Line on UPI similar to what India experienced when UPI was first launched. Sounding a note of caution on banks’ preparedness for Credit Line on UPI volumes, he added, “We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on Credit Line on UPI before long, and this calls for

population-scale banking infrastructure capable of processing 100s of
millions of credit accounts. We have pre-architected our solution for this from Day 1.”

India's financial landscape today presents a unique dichotomy. TransUnion CIBIL has reported that more than 160 million Indians remain underserved by traditional credit channels. At the same time, banks have pre-approved credit for millions of customers but are

unable to distribute loans to them efficiently. Unlike traditional
loans, credit products that leverage Credit Line on UPI offer on-demand access through any payment service provider app leveraging a fully digital-native experience, allowing consumers to borrow precisely how much they need, when they need it.