Do you know more than 40% of the 58 million MSMEs in India lack access to traditional lending?
The harsh truth is banks rarely provide loans to these MSMEs without collateral or sufficient credit information. So #nonperformingassets are another risk they face.
However, fintech companies have transformed things for the better.
1) Cash-flow-based loans are the primary step towards it. Like @Capital Float, an NBFC that offers collateral-free loans to small businesses.
2) Intensifying the financial ecosystem by adopting trends like mobile financing, last-mile service, and non-collateral loans can reduce economic voids.
3) In the era of online services, businesses will collect tons of customer data and insights. Data protection, consumer data acquisition, and safe APIs are all fintech solutions.
4) Fintech’s disruption in the MSME sector is best illustrated by the rapid development of Point of Sale (PoS) systems from mechanical cash registers to online retail systems.
5) Innovation of products to chase growth amidst challenges – #fintechs are solving every puzzle possible to help MSMEs thrive, from BNPL to voice-based account authentication to contactless tap-and-pay.
Are #fintechs catalyzing this whole upswing of the MSME sector?
#manispeaksmoney #fintech #msme #digitaltansformation