- Next-generation banking technology company Zeta has partnered with India’s HDFC Bank to power its Credit Line on UPI (CLOU) solutions.
- The bank will leverage Zeta’s Digital Credit as a Service technology, which enables banks to manage a credit product from origination through processing without requiring multiple integrations.
- Zeta won Best of Show in its Finovate debut at our all-digital fintech conference in 2020.
Banking technology provider Zeta has inked a partnership with India’s HDFC Bank to power its new Credit Line on UPI (CLOU) solutions. Announced by India’s National Payment Corporation of India (NPCI) in 2023, the CLOU scheme will make it easier for individuals to access credit and help banks leverage the UPI ecosystem to reach a significantly wider audience. HDFC’s partnership with Zeta will enable the bank to use the CLOU scheme to launch a range of new credit products by connecting pre-approved credit lines to the UPI user base.
Zeta Co-Founder, Global CTO, and CEO APAC Ramki Gaddipati referred to CLOU as “a credit superhighway.” He added, “Our solution is architected to leverage its innovative capabilities across the entire credit distribution lifecycle spanning underwriting, origination, distribution, usage, repayments, collections, and more.” Gaddipati emphasized that Zeta’s solution was built to fit the new technology, saying it would deliver a “UPI-first, mobile-first, and cloud-native credit products ecosystem.”
HDFC’s CLOU offerings will be powered by Zeta’s Digital Credit as a Service (DCaaS) solution. Unveiled earlier this year in India, Zeta’s technology enables banks to manage a credit product from origination to processing–as well as rewards, customer services, and more–without having to integrate multiple software packages and services. DCaaS also provides specific product blueprints to streamline the development of different types of credit lines on UPI products.
The technology was developed as Zeta recognized that the growing popularity of UPI was putting a strain on core banking systems–and that this strain could impact credit lines on UPI, as well. The company believes that CLOU will become a $1 trillion opportunity for banks by 2030.
The CLOU announcement is only the latest achievement of the partnership between Zeta and HDFC Bank. This spring, the bank announced that its PayZapp mobile app–developed in partnership with Zeta–had won the Celent Model Bank Award 2024. The app notched more than seven million customers since its launch in March 2023, and is among the top-rated apps in the Finance section on Indian app stores.
“We are glad to develop the Credit Line on UPI offering with Zeta enabling our customers to enjoy the benefits of an affordability program combined with the ease of doing a UPI transaction,” HDFC Bank Sr. EVP Rajanish Prabhu said.
HDFC Bank offers a wide range of banking products and solutions, including consumer, commercial, private, and investment banking; investment, asset, and wealth management; insurance; credit cards; and more. As India’s leading private sector bank, the Mumbai-based institution is the 10th largest bank by market capitalization ($145 billion), and the 16th largest employer in India.
Founded in 2015 and headquartered in San Francisco, California, Zeta won Best of Show in its Finovate debut at our all-digital conference in 2020. The company returned the following year to demo its modern, cloud-native, omni stack banking platform at FinovateFall 2021. Zeta achieved unicorn status that year courtesy of a $250 million round led by SoftBank.
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