Zeta Introduces Credit As-A-Service Product for Banks Integrated with UPI

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 expects transaction volumes on this scheme to exceed $1 Tn by 2030 and aims to capture 50% of this market opportunity with its solution, helping banks create and launch credit products quickly."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, necessitating 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 procedures, packaged services to improve operational effectiveness, 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.