A recent report released by Deloitte India posits that there is a huge potential for growth in Financial Services on ONDC among other industries.
Key Highlights
- Opportunities for growth in the Agricultural Industry and Financial Services on ONDC.
- Supply-chain financing a product offering with high growth.
In a recent report released by Deloitte India, the conglomerate posits that ONDC could hold the potential to boost the growth of the Financial Services sector in India.
In the report titled “ONDC: Commerce@Bharat: Redefining business models and supply chain”, the company mentioned how Fintechs could use the ONDC to provide Financial Services to MSMEs on the network.
Elucidating upon the opportunities for the Fintech Industry, the report mentions that Fintechs could function both as a seller of financial services on the network and as an enabler of payments on the network.
Apart from the Financial Services Industry, the report mentioned opportunities ONDC opens up for the Agricultural sector and the Retail sector.
Opportunities in Financial Services on ONDC
The report highlighted several opportunities for Fintechs to market their products by providing Financial services on ONDC.
Apart from the growth potential in insurance services and investment-related products, the report mentions Supply-Chain Financing and Business Credit Cards that could be verticals for with high growth on the ONDC network.
Highlighting the Supply-chain financing gap of around INR 6000 crores in the domestic market, the report contended that it could be capitalised upon by the Financial Services Industry.
Similarly, Business Credit Cards, or Corporate Credit Cards was one of the verticals mentioned in the report with huge potential for growth.
Given the working capital requirements of small businesses/MSMEs, the two verticals offer direct solutions to the participants of the network.
However, the report also mentioned the challenges Fintechs may face in offering Credit Card services on ONDC given that they are not prevalent in the Indian market.
In the recent past, the Financial Services Industry has shown resilience in growth with the industry holding the potential to create value worth USD 400 billion by 2023.
