As a small business owner myself, I can relate to the challenges faced by micro, small, and medium-sized enterprises (MSMEs) in accessing financing. It’s heartening to know that fintech platforms are providing better customer service, flexible terms, and speed of funding to MSMEs, as cited by a study report.
I found it interesting that MSMEs are using fintech platforms not only to bail out struggling businesses but also to raise working capital for expansion and growth, as well as lend to individuals or other businesses. It’s great to see that these platforms are offering a variety of assistance to MSMEs during the pandemic, such as waived fees, eased payment plans, insurance or coverage plans, and additional credit facilities. The survey results indicate that fintech services complement, rather than compete with, traditional banking services in ASEAN countries. This is reassuring to know, as increased access to finance through fintech platforms can also encourage MSMEs to engage with traditional banks.