Karnataka Bank partners with Northern Arc Capital to enhance digital lending solutions

Karnataka Bank (KBL), a leading Private Sector Bank, and Northern Arc Capital Limited ("Northern Arc"), one of India's diversified NBFCs and a financial services platform, have signed a memorandum of understanding (MoU) to enable the bank to offer customer-centric financial solutions to retail borrowers.

The nPOS, Northern Arc's technology platform for co-origination, co-lending, and pool buy-out, aims to enable Karnataka Bank to seamlessly connect with multiple originators for loan origination, underwriting, disbursement, and collection, along with interactive dashboards, proactive nudges, and advanced reconciliation abilities.

This collaboration will allow the bank to digitally onboard various NBFCs, to lend significant amount of money and onboard a larger customer base as a result of their better consumer outreach.

Speaking on this arrangement, Shri Srikrishnan H, Managing Director & CEO, Karnataka Bank, said, "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. The relationship with Northern Arc will assist us in onboarding various NBFCs and ensuring last mile integration beyond our branch serving areas."

"We are delighted to partner with Karnataka Bank in their digital transformation journey. The nPOS platform will aim to enable the bank to accelerate its co-origination and co lending partnerships with fintechs and NBFCs. This strategic alliance underscores our commitment to facilitate credit to the underserved and underbanked individuals and businesses and drive innovation within the financial industry by enabling banks to stay ahead within the rapidly evolving regulatory and digital landscape," said Ashish Mehrotra, CEO & MD, Northern Arc Capital.

"Karnataka Bank is excited to announce its tech-enabled partnership with Northern Arc. This collaboration aims to enhance digital lending, risk management and financial inclusion, and to provide the customers with innovative solutions. We look forward to delivering a seamless experience through this strategic alliance," said Sekhar Rao, ED, Karnataka Bank.

The agreement was exchanged in Bengaluru by Srikrishnan H, Managing Director and CEO of Karnataka Bank; and Ashish Mehrotra, CEO & MD, Northern Arc Capital. Also present on the occasion were Vinaya Bhat PJ, General Manager, Credit Marketing Department, and other executives of Karnataka Bank and Northern Arc.