Loan approvals made instant: RBI fast-tracks lending with WSO2

With support from WSO2’s API Management and Identity solutions, the Unified Lending Interface (ULI) has cut loan processing times from weeks to minutes, bringing unprecedented speed and efficiency to India’s financial ecosystem

The Reserve Bank of India (RBI) has taken a groundbreaking step in transforming the lending ecosystem with the launch of the Unified Lending Interface (ULI), a secure and centralized platform designed to provide seamless access to financial data for lenders. Developed with the support of WSO2’s API Management and Identity solutions, ULI has drastically reduced loan processing times—from several weeks to just minutes—ushering in a new era of speed and efficiency in India’s financial sector.

Previously, Indian lenders faced major hurdles in obtaining financial and non-financial data required for informed credit decisions. Data sources were fragmented across various entities such as central and state authorities, fintech companies, account aggregators, credit bureaus, and digital identity providers. This siloed approach forced lenders to establish individual connections with each entity, resulting in a complex, costly, and time-consuming underwriting process that hindered the growth of digital lending.

Driving innovation in digital lending

To address these systemic inefficiencies, the RBI, in collaboration with the Reserve Bank Innovation Hub (RBIH), aligned the ULI initiative with India’s broader Digital Public Infrastructure (DPI) vision. The goal is to create an interconnected financial landscape that fosters innovation through technologies like embedded finance and AI-powered lending, enabling real-time credit decisions and revolutionizing access to finance across the nation.

Leveraging WSO2 API Manager and WSO2 Identity Server, RBIH was able to

●     Cut down loan processing time from 4-6 weeks to a few minutes with the integration of real-time data across varied sources and automated workflows significantly reducing the time consumed for loan processing

●     Establish a unified all-encompassing platform, eliminating the need for individual, complex connections with various data providers and minimizing operational costs and complexity

●     Bridge the financial gap for underserved communities by leveraging alternative credit data beyond traditional credit scores and fostering greater financial inclusion

●     Implement a simplified and seamless user onboarding process by enabling hassle-free self-registration, making it easier for underserved communities to access lending services

●      Leverage analytics for actionable insights into user behaviour, allowing RBIH to fine-tune the platform for better user experience, spot trends in usage and facilitate informed data-driven decisions

●     Reinforce data security and compliance with secure API traffic management and encryption, ensuring all borrower data is handled safely, while adhering to data protection regulations