In this episode, Lars Markull interviews Ankit Singh, founder of Vaya Technologies, a company specializing in embedded lending solutions for vertical SaaS platforms in the US. Previously instrumental in developing India's Open Credit Enablement Network (OCEN), Singh brings unique insights from both the world's most advanced open banking infrastructure and the American embedded lending landscape.
Key Insights about OCEN and India Stack:
- OCEN is an open protocol for embedded lending that allows any platform to connect with multiple lenders through standardized APIs
- Part of India Stack, which started in 2008-2009 with only 17% of India's population having bank accounts
- Built as a public good, following the successful implementation of Aadhaar (identity) and UPI (payments) systems
- Currently being used by major banks and embedding platforms, with millions of rupees in loans disbursed
- First implemented with the Government e-Marketplace (GeM) before expanding to other use cases
Embedded Lending Global Perspective:
- Different regions show distinct characteristics in embedded lending implementation
- US market has hundreds of vertical SaaS companies and marketplaces
- China's market is dominated by large players like Ant Financial and WeBank
- EU and UK have similar structure to US but fewer companies
- India stands out with its open embedded lending infrastructure
Vaya Technologies and Vertical SaaS:
- Focuses on integrating lending products into vertical SaaS platforms' specific workflows
- Emphasizes contextual credit offerings rather than generic financial products
- Creates tailored solutions for specific use cases like inventory procurement or payroll
- Implements lending features that enhance core product adoption
- Offers quick implementation (less than a week) through no-code solutions
- Uses platform data and business context to create more effective lending products