ONDC — the Open Network for Digital Commerce — disrupted retail e-commerce by creating an interoperable network where any buyer app could access any seller app. The same model is now being applied to financial services. In 2025-26, ONDC's financial services vertical (branded as ONDC-Fin) is moving from pilot to broader rollout, with implications for how Indians access credit, insurance, and investments.
What ONDC for financial services means
Currently, financial products are sold in silos. To buy a term insurance plan, you visit PolicyBazaar, an insurer's app, or a bank. To take a loan, you go to a bank branch, app, or NBFC. ONDC-Fin aims to decouple the buyer interface from the product provider:
- Any ONDC-compatible app (Paytm, BHIM, a local language app) becomes a point of sale for any registered insurer, lender, or AMC
- The product terms, pricing, and KYC stay with the financial institution (the "seller" in ONDC terms)
- The customer-facing experience is owned by the buyer app
Products being piloted in 2026
- Credit: Personal loans, business loans, BNPL — already partially live via the Account Aggregator stack integrated with ONDC
- Insurance: Term life, health, motor — comparison and purchase in a single flow
- Mutual funds: Transact across AMCs from a single interface without separate logins
- Fixed deposits: Compare and open FDs across banks from one app
The AA (Account Aggregator) connection
ONDC-Fin works alongside the Account Aggregator framework. When you apply for a loan on an ONDC-compatible app, the lender (seller node) can request your financial data via AA with your consent — bank statements, GST returns, ITR data — enabling instant underwriting without manual document submission.
Timeline and what to expect
Full interoperability for all financial products is expected by late 2026 or early 2027. In the interim, expect specific product categories (credit and insurance) to go live on major apps. For consumers, this should mean better price discovery, lower switching costs, and access to products from smaller, competitive providers.