How will Open Credit Enablement Network (OCEN) Operate and what will be its implications on the overall market. What breakthrough will it bring in the lending space?
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India is a low “formal” credit society - those at the bottom of the pyramid who really do need credit facilities are out of the formal system; Vegetable vendors, roadside vendors etc.
This shall be a game changer for these people
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UPI kind of credit enablement rail networks that connects lenders and marketplaces. Soon access to credit will become as easy as making a UPI transaction!
Exciting times ahead 
As Nandan Nilekani talked about it last week, I believe open credit enablement network and account aggregation (predominantly to be done by Loan service providers) is going to be a big thing in next couple of years. With a 90% of the 60 Mn MSMEs as potential market, regulator getting into action with giving clearer guidelines and early success of India Stack, I think we are witnessing an inflection point in msme credit business.
Will these entities (Telecom, Utilities, Mobile platforms) that have unique alternate data be ready to share it with others for the purpose of Lending. Would they sell their fuel for free?
The biggest asset I believe we have is land. But it is difficult to pledge as collateral. What thoughts do you guys have on converting land or house in Demat like shares?!
Again, if you are trying to serve those MSMEs who are somewhere on the financial platform with GST or banking, it is easier to lend to them. Though with OCEN, it will make it more seamless and easy for them to get small sachet loans. But if we are taking about vegetable vendors or roadside vendors, the information that can be utilised is the UPI transaction data only because they have nothing else. But how will that UPI transaction data be used for an entire set of applications and how will the data be compiled at one place. Bharatpe is already lending to people who use their QR codes for payments based on how much transactions they do through them
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