Access to financial services has never been easier in the digital era, thanks to innovative solutions like Open Finance. This transformative technology is reshaping the financial landscape in India by providing seamless, secure, and inclusive financial services. Whether you're a lender hoping to reach a larger audience or a borrower looking for the finest credit deals, the Open Finance Stack powered by Protean provides unrivalled benefits.
This blog provides a complete overview of how Open Finance is revolutionising the Indian financial sector, as well as the process of registering and using it to access personal loans.
Steps to Register and Use Open Finance on Protean for Accessing Personal Loans
To register and use Protean Open Finance for personal loans, users need to follow the steps outlined below –
Step 1: Begin Your Lending Journey
To start your lending journey, open the Open Finance application and provide your phone number. You will receive a One-Time Password (OTP) on this number. Enter the OTP to verify your identity and proceed. Once verified, select the type of loan you need. On the next page, you must select the loan type (between Individual & Business loans).
Step 2: Provide Demographic Information
Next, you need to provide your individual demographic information. This includes details such as your name, address, date of birth, and other relevant personal information. Additionally, you will have to enter your account aggregator handle. This handle is crucial as it links your financial data with the service providers.
Step 3: Approve Data Sharing Consents
After providing your demographic information, the account aggregator will enable you to approve data sharing consents with Financial Information Users (FIUs). This step allows banks and Non-Banking Financial Companies (NBFCs) to access your banking data in real time and underwrite loans. Consent verification will be done via OTP, ensuring a secure process to fetch data from the account aggregator.
Step 4: Data Sharing and Underwriting
Once you have approved the data sharing consent, the lenders can use the data received through the account aggregator to underwrite loans. This step involves assessing your financial information, credit history, and other relevant data to determine your loan eligibility and terms.
Step 5: Receive Loan Offers
Based on the underwriting process, you will receive loan offers from different service providers. Review these offers carefully, comparing interest rates, repayment terms, and other conditions. Select the loan offer that best suits your requirements.
Step 6: Complete KYC Formalities
After selecting a loan offer, you will need to complete Know Your Customer (KYC) formalities. This process involves providing identification documents and verifying your identity. Additionally, you will need to provide details of your disbursement account, which is the account where the loan amount will be credited.
Step 7: Set Up E-Mandate for Repayment
To ensure effortless loan repayment, you will need to set up an e-mandate. An e-mandate authorises the lender to automatically debit the loan repayment amounts from your account on the due dates. This setup helps in maintaining timely repayments and avoiding any missed payments.
Step 8: E-Sign Agreement and Monitoring Consent
Following the e-mandate setup, you will need to e-sign the loan agreement. This step confirms your acceptance of the loan terms and conditions. Additionally, you will need to provide monitoring consent to the lender. This consent allows the lender to monitor your financial activities related to the loan, ensuring compliance with the agreement.
Step 9: Loan Application Summary
Once all the above steps are completed, you will receive a summary of your loan application. This summary includes details such as the payment plan, loan amount, disbursement information, and other relevant details. Review this summary carefully to ensure all information is accurate and as per your understanding.
Step 10: Request for Disbursement
After reviewing the loan application summary, you can request for the loan disbursement. Once approved, the loan amount will be credited to your disbursement account.
Tips for a Smooth Loan Application Process
While using Protean’s Open Finance platform to access personal loans, make sure to keep in mind these points -
- Providing accurate demographic and financial information is crucial. Any discrepancies can delay the loan approval process.
- Ensure that you have all necessary identification and financial documents readily available for the KYC process.
- Take your time to compare different loan offers. Consider not just the interest rates but also the repayment terms and other conditions.
- Before e-signing the loan agreement, thoroughly read and understand all terms and conditions to avoid any future misunderstandings.
- A good credit score can significantly improve your chances of getting better loan offers. Make sure to manage your finances well and avoid any defaults.
How Does Open Finance Stack Help People?
Open Finance Protocols allows services through open networks of all demand aggregators such as digital portals, banking correspondents, digital DSAs, and online agents. With the backing of Protean’s data and ID verification services, it fosters a perfect delivery of financial products.
1. Empowering Digital Journeys
Open Finance Stack helps facilitate users’ digital journeys by providing access to numerous assisted banking service providers. This relationship assists in the expansion of the coverage of financial institutions and thus enables more people to access the services. By connecting to digital portals, banking correspondents, and online agents, the stack also guarantees that they can reach financial services in more than one way.
2. Providing the Finest Financial Product
Using Open Finance Stack, citizens can find the best offers in several connected financial services. These products include well-priced loan packages, all-around insurance solutions, gift cards, and sound investment products. This helps the user make a sound decision and select services from the platform that are suitable to his or her needs.
3. Functioning of Services on Open Networks
Open Finance Stack allows service on open networks as per the preferences of demand aggregators. This involves digital portals, banking correspondents, digital Direct Selling Agents (DSAs), and online agents. The stack ensures that the above services are delivered efficiently in an open network hence increasing the access to financial services.
How Will Protean Help?
Protean provides a single integration for working with all network participants. This means freedom from separate integrations and agreements with multiple lenders. Instead, users can benefit from a single integration for open credit networks, including ONDC and OCEN. This full-stack solution enables users to go live on the open finance network quickly and efficiently.
1. Single Integration for All Networks
Protean simplifies the process by offering a single integration for open credit networks. This means users don't need to manage multiple integrations or agreements with various lenders. Instead, they can access a unified system that connects them to a broad network of financial service providers. This streamlined process makes it easier for users to manage their financial interactions and ensures a smoother user experience.
2. Full Stack Solution for Going Live
Protean's full-stack solution enables users to go live on the open finance network quickly. This solution includes all the necessary tools and integrations needed to start offering financial services immediately. By providing a comprehensive package, Protean ensures that institutions can quickly and efficiently launch their financial services on the open network.
Benefits of Open Finance for Lenders
Protean's Open Finance adapter enables loan service providers to broadcast data to lenders using open protocols. This allows lenders to reach a wider audience and open new channels for their business. Additionally, it lowers the acquisition cost for lenders, making it more cost-effective to offer their services to a larger number of borrowers.
1. Reach a Wider Audience
Lenders using Protean's Open Finance adapter can reach a wider audience. This expanded reach allows them to connect with more potential borrowers, increasing their customer base. By accessing a broader network of users, lenders can grow their business and increase their market share.
2. New Channel for Business
Protean provides lenders with a new channel for their business. This new channel allows lenders to connect with borrowers in different ways, offering more flexibility in how they provide their services. By diversifying their channels, lenders can reach more customers and offer more tailored financial solutions.
3. Low Acquisition Cost
Protean's solutions help lenders reduce their acquisition costs. By streamlining the integration process and providing a unified platform, lenders can lower the cost of acquiring new customers. This cost savings can be passed on to borrowers in the form of more competitive loan products and services.
Benefits of Open Finance for Borrowers
For borrowers, Protean's Open Finance solution offers a wide range of options and low-cost loan products. Additionally, borrowers benefit from enhanced data security and privacy, ensuring that their financial information is protected throughout the lending process.
1. Availability of a Wide Range of Options
Borrowers using Protean's Open Finance solution have access to a wide range of loan products and financial services. This platform allows borrowers to choose the products that best meet their needs, ensuring that they can find the right financial solutions for their situation.
2. Low-Cost Loan Products
Protean's solutions help reduce the cost of loan products for borrowers. By lowering acquisition costs for lenders, Protean enables lenders to offer more competitive loan products. This means borrowers can access lower interest rates and better loan terms, making it more affordable to borrow money.
3. Enhanced Data Security and Privacy
Protean prioritises data security and privacy for borrowers. By using advanced data verification and security protocols, Protean ensures that borrowers' financial information is protected. This enhanced security gives borrowers peace of mind, knowing that their data is safe throughout the lending process.
Benefits for Agent Networks (Demand Side)
Protean's Open Finance solution also benefits agent networks by developing and deploying end-to-end user journeys. Protean's ready-made ONDC FS journeys can be integrated into existing platforms or apps for quick enablement of ONDC journeys for their users. This integration helps agent networks provide a seamless experience for their users, ensuring that they can access financial services easily and efficiently.
1. End-to-End User Journeys
Protean develops and deploys comprehensive user journeys for agent networks. These end-to-end journeys ensure that users have a smooth and seamless experience from start to finish. By providing a well-designed user journey, Protean helps agent networks deliver a better user experience.
2. Quick Integration with Existing Platforms
Protean's ready-made ONDC FS journeys can be quickly integrated into existing platforms or apps. This quick integration enables agent networks to offer ONDC journeys to their users without the need for extensive development work. By providing a fast and efficient integration process, Protean helps agent networks go live with their services quickly.
Conclusion
Protean's Open Finance Stack offers a comprehensive solution for delivering frictionless financial services in India. Protean simplifies the integration process and provides a full-stack solution that helps both lenders and agent networks access seamless financial services. With benefits for both lenders and borrowers, Protean's Open Finance Stack is transforming the financial landscape and making financial services more easily accessible than before to everyone.
