Profitable Lending: How Olyv revolutionized small-ticket lending
About Olyv
When traditional lenders wrote off small-ticket lending as a "challenging proposition", Olyv (formerly SmartCoin) proved them wrong. It transformed micro-lending into a scalable and sustainable business model.
Founded in 2017 with a mission to bridge the credit gap for millions of hardworking citizens invisible to the financial system, The platform has revolutionized lending by reducing approval times from days to minutes while significantly expanding access to previously excluded segments.
Company highlights—
99%
pincode coverage across India
60-70%
of borrowers from Tier 2 and Tier 3 locations
10-20%
quarter-on-quarter growth in average ticket size
How Olyv stands out
When traditional lenders often dismiss Tier 2 and Tier 3 markets as "unprofitable," because of the small ticket size of loans, Olyv discovered the opposite. They set out to redefine small-ticket lending with innovation that made financial inclusion commercially viable, leading with —
Instant verification
What used to take 45-60 minutes of manual verification now happens automatically in under 5 minutes.
Digital-first approach
Eliminated paperwork hassles and endless follow-ups that plagued traditional lending.
Underserved focus
Serving customers–from vegetable vendors to gig workers–in locations traditional finance has largely ignored.
Data-backed decisions
Using authenticated financial data for better credit assessment instead of relying on informal credit history.
Challenges
But like every fintech disruptor serving the underserved, Olyv had significant challenges to solve.
Operational economics—making small loans viable
Traditional loan application processes required extensive paperwork, manual verification, and multiple follow-ups. When operational costs exceed ₹3,000 per loan, how can you profitably serve someone who needs just ₹25,000? These inefficiencies made small loans economically unfeasible despite massive demand.
Credit assessment—serving the credit invisible
It's a classic catch-22: without credit history, you can't get loans. Without loans, you can't build credit history. Millions remained locked in this cycle, forced to rely on informal lenders charging extreme interest rates. Traditional systems weren't designed to serve those who lack formal credit history or banking relationships.
Technical reliability—system downtime can cost peoples dreams
In fintech serving urgent credit needs, system reliability isn't a luxury—it's survival. Every "system down" message when customers need funds most means lost business and broken trust, especially for borrowers with time-sensitive needs.
The Solution
Switching to Setu's Account Aggregator framework didn't just bring speed; it transformed Olyv's entire lending economics and made serving the underserved profitable.
We spoke with Vinay Kumar Singh, Co-Founder & Chief Product Officer at Olyv, to understand their transformation journey—
IN FOCUS
India's Account Aggregator framework—
Setu Account Aggregator gateway
Access financial data with user consent
Automated verification with authenticated data
With Setu's Account Aggregator implementation, they now collect authenticated bank statements directly from customers' accounts with their consent, giving them reliable data for better credit decisions.
"The Account Aggregator framework which we implemented through Setu has transformed our lending process. What usually takes a dedicated team 45-60 minutes of manual verification now happens automatically in under 5 minutes."
This reduction in processing time slashed operational costs and eliminated the paperwork burden that made small loans economically unviable.
Technical heavy-lifting handled
Behind the scenes, Setu's platform handles hundreds of edge cases—from bank server timeouts to data format inconsistencies. These issues would have required months of engineering time for Olyv to solve themselves.
"Setu's hands-on approach to optimizing workflows and quick resolution times mean our customers never face the dreaded 'system down' message when they need funds most."
Making the case internally
The transformation was measurable across every metric that mattered:
"We are seeing a quarter-on-quarter growth of 10-20% increase in the average ticket size of loans. There has been 16% relative improvement in consent conversion over a quarter. With Setu managing the complexities, we have seen data fetch success rates hover around 85%, hitting peaks of 92%."
The reliability factor was crucial:
"Working with Setu has been transformative for our business. Eligible customers are being onboarded more quickly and with less hassle."
Impact
User experience
Same-day funding replaced weeks of waiting, transforming lives of small business owners and gig workers.
Geographic reach
99% pincode coverage achieved with 60-70% of borrowers from Tier 2 and Tier 3 locations.
Operational efficiency
16% improvement in consent conversion and 92% peak data fetch success rates.
Business viability
Transformed small-ticket lending from challenging to profitable, proving financial inclusion can be commercially compelling.
"For customers like small business owners and gig workers, these loans are lifelines. The vegetable vendor who previously waited two weeks for a loan could now receive funds the next day—the difference between losing inventory and growing her business."
Looking forward
Olyv continues to leverage Setu's Account Aggregator infrastructure to expand their reach and refine their lending model. Their success proves that when technology and innovation come together with purpose, financial inclusion isn't just achievable—it can uplift communities while creating sustainable businesses.
"Through technology and innovation, Olyv and Setu are proving that financial inclusion isn't just possible—it's profitable."
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