Financial service provider Northern Arc Capital partnered with banking institution Karnataka Bank (KBL) on Wednesday, to offer customer-centric financial solutions to retail borrowers.
The non-banking financial firm said to provide its technology platform nPOS to Karnataka Bank for co-origination, co-lending and pool buy-out.
Co-origination involves collaborative lending between a bank or financial institution and a non-banking financial company (NBFC), co-lending denotes a partnership where banks and NBFCs jointly extend credit to borrowers, while pool buy-out refers to the acquisition of a pool of loans by an entity for investment or securitization purposes.
Northern Arc said this will allow banks to onboard multiple NBFCs, extend substantial loans, and expand its customer base through enhanced consumer outreach.
The agreement was exchanged at Bengaluru by Srikrishnan, Executive Chief of Karnataka Bank and Ashish Mehrotra, CEO of Northern Arc Capital.
nPOS is a platform of Northern Arc that links banks and other financial institutions with originators, providing solutions for loan origination, underwriting, disbursement, and collection reconciliation processes inherent in co-lending or partnership lending.
“Karnataka Bank’s arrangement with Northern Arc through the platform of NACL (nPOS), is very strategic considering our aspirations to partner with multiple Fintechs, we are looking at multiple areas to collaborate and co-lending is a big focus to grow our Advances book,” said Srikrishnan.
The platform caters to multiple sectors such as microfinance, small business loans, mortgage loans, vehicle loans, consumer durable loans, and personal loans and can also accommodate most types of retail loans.
Registered under the Reserve Bank of India as a non-banking finance company Northern Arc specializes in structured finance, loan syndication, securitization, underwriting, debt capital markets, affordable housing, corporate finance, FinTech and more.
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