ICICI Bank and Ola have signed a Memorandum of Understanding (MoU) to provide small ticket digital credit to Ola users. ICICI Bank’s spokesperson said that both the companies are yet to chalk out details of the offering such as credit limit, loan’s validity etc for Ola users. But said the offering will be similar to ICICI Bank-Paytm short-term credit offering launched two months ago.
ICICI Bank and Paytm had partnered to offer short-term credit to users without interest for 45 days and up to Rs 20,000. The service was initially allowed to select ICICI Bank customers who are on Paytm, but later extended to other bank customers who use Paytm.
The spokesperson told that as part of MoU, non-ICICI Bank customers will also be able to access the small ticket digital credit instantly on the Ola Platform. The digital credit will be provided based on big data algorithm developed by the bank and will be available on a real-time basis. The credit assessment will be done based on the financial and digital behaviour of the customer which includes ride patterns etc. The bank will define the credit-worthiness of the user and will credit the amount accordingly. The bank said in a statement, that the entire process will be completely digital, without requiring any paperwork.
Once the credit limit is set up for a customer, a consolidated bill is generated on the first day of the next month, which has to be repaid in a particular time frame, the spokesperson added.
Apart from credit, Ola and the has rolled out other range of services as part of the MoU. Following are the other services both the entities will be providing:
Ola cab from ICICI app: ICICI Bank customers will be able to book Ola cabs and pay the fare by using the bank’s mobile banking applications – ‘iMobile’ and ‘Pockets’. iMobile is a mobile banking app focused on rural consumers, and the tie will help Ola to get users from small towns and rural areas. It is not clear if users still need an Ola app installed to book a ride from the bank’s apps.
Digital payments to drivers: As part of the partnership, ICICI Bank will provide a ‘pay direct’ debit card to Ola’s driver-partners. With this, Ola’s auto and cab driver-partners will be able to get their daily earnings directly into their ‘Pay Direct’ card accounts. Additionally, driver-partners can also swipe this card at merchant outlets for their purchases.
Co-branded credit card: ICICI Bank will launch a new co-branded credit card in association with Ola, on which users will get offers, cashbacks and reward points.