About the Transformation
Karnataka Bank is revolutionizing rural financial inclusion with its co-lending platform, powered by Finacle. Committed to financial inclusion, the bank partnered with M/s Paisalo under an 80:20 co-lending model to provide credit access to underserved sectors, including SHGs and women entrepreneurs.
To achieve this, Karnataka Bank developed a secure, scalable platform using 14 Finacle APIs. The system enabled seamless integration for tasks like customer onboarding, credit checks, and loan disbursements. Features such as a Business Rules Engine (BRE) and Loan Application Processing System (LAPS) streamlined operations, enabling Straight Through Processing (STP) and reducing manual intervention.
This innovative solution has expanded rural outreach, enhanced customer convenience, and reduced fraud. With faster processing and cost-effective operations, Karnataka Bank is building a ₹100 Crore priority sector portfolio while fostering economic empowerment. This platform positions Karnataka Bank as a pioneer in digital banking, ready for future fintech collaborations to drive financial inclusion.
