YES BANK and Northern Arc Capital Partner to Bridge India’s Credit Gap

YES BANK and Northern Arc Capital have announced a strategic partnership aimed at expanding formal credit access to underserved segments across India. This collaboration, facilitated by the influence of their common shareholder, Sumitomo Mitsui Banking Corporation (SMBC), seeks to align institutional strengths to support the Government of India’s Viksit Bharat 2047 financial inclusion agenda.

Strengthening Credit Delivery:
The partnership leverages Northern Arc’s expansive network of 368 Originator Partners to facilitate large-scale credit deployment for YES BANK. By integrating Northern Arc’s structuring and origination expertise with YES BANK’s robust balance sheet, the initiative aims to:

Scale Digital Lending: Utilize a co-lending model supported by Northern Arc’s nPOS platform.

Enhance Underwriting: Implement data-led underwriting and rigorous portfolio monitoring frameworks to maintain quality and transparency.

Reach Underserved Markets: Focus on providing granular credit opportunities to segments that currently lack access to formal banking.

Technological Integration:
A cornerstone of the alliance is the integration of digital infrastructures. YES BANK’s digital lending architecture will be combined with Northern Arc’s proprietary technology suite, including nPOS, NIMBUS, and NuScore, to ensure seamless loan onboarding and efficient credit delivery at scale.

Expanding Investment Opportunities:
Beyond lending, the partnership enhances the wealth management ecosystem for YES BANK’s retail, affluent, and institutional clients:

Investment Products: Northern Arc Investment Managers (NAIM) will provide Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS).

Digital Wealth Access: Altifi, Northern Arc’s online bond platform, will be integrated into YES BANK’s digital ecosystem, providing customers with transparent and direct access to fixed-income investment products.

Leadership Vision:
Ashish Mehrotra, MD & CEO of Northern Arc Capital, highlighted the importance of institutional synergy: “This partnership brings together complementary capabilities to build a more efficient and accessible financial ecosystem for underserved borrowers and emerging investors.”

Dr. Rajan Pental, Executive Director of YES BANK, emphasized the long-term impact of the collaboration: “Our partnership aligns with our strategy to build technology-enabled credit infrastructure… creating a powerful engine for expanding formal credit across priority segments.”

This strategic alliance marks the beginning of a long-term collaboration intended to accelerate growth for both institutions while driving inclusive economic participation across the country.