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February 18, 2023 at 10:51 am #1241Norma HoltParticipant
What role fintech may play in transforming micro, small, and medium-sized enterprise (MSME) credit and financing?
February 19, 2023 at 10:54 am #1243Elizabeth SimpsonParticipantFintech can be a game changer for MSMEs lending and finance, as it can facilitate risk assessment and the measuring of the creditworthiness of MSMEs. Currently, the risk assessment framework is over-dependent on asset ownership, CIBIL scores, documentation, etc. Fintech can provide a cash-based lending model that assesses creditworthiness of an MSME based on its cash flows leveraging the power of digital payments. Neobanks have entered the financial system with the tag of ‘challenger banks’ because they challenge the complex infrastructure and client onboarding process of traditional banks. Account aggregators (AAs) are a game-changing move in the fintech arena, enabling the sharing of financial information in a real-time and data-blind manner between regulated entities (banks and NBFCs). This helps banks reduce transaction costs and offer lower ticket-size loans, and more tailored products and services to their customers.
Co-lending partnerships between banks and fintech-led NBFCs can help MSMEs get loans as both traditional and digital lenders analyze structured and unstructured data to assess risk. As innovation and technology progress, fintech will bring in multiple more models and players in the credit arena, reducing the risk and cost of lending, and making the system more inclusive and accessible for the MSME sector.February 20, 2023 at 1:56 pm #1244Michael RussellParticipantIn my opinion, Tech stock delisting””in the text “”MSMEs’ risk assessment and creditworthiness may be improved via fintech. Asset ownership, CIBIL ratings, paperwork, etc. dominate the risk assessment framework. Fintech may use digital payments to determine MSME creditworthiness based on cash flows. Neobanks are called “”challenger banks”” because they challenge traditional banks’ complicated infrastructure and client onboarding. Account aggregators (AAs) enable real-time, data-blind financial data interchange across regulated companies, revolutionizing fintech (banks and NBFCs). This reduces transaction costs and allows banks to provide lower-ticket loans and more customized goods and services.
Banks and fintech-led NBFCs may co-lend to MSMEs by assessing risk using structured and unstructured data. Fintech will increase credit models and players, lowering risk and cost and rendering the system more equitable and accessible for MSME lending.February 21, 2023 at 10:58 am #1245Beverleigh H PiepersParticipantIndia has one of the fastest-growing fintech industries in the world, with more than 2,000 fintech startups and a dozen of fintech unicorns. A critical enabler of this growth has been the India Stack, a digital infrastructure project introduced more than a decade ago. The India Stack aims to create a unified software platform for governments, businesses, startups and developers, and seeks to promote financial inclusion, improve the delivery of public services and benefits, and increase competition in the Indian financial sector.
India has also witnessed the rise of so-called neo-banks over the past years.
Neobanks are fintech startups that offer “”over-the-top”” services to consumers, relying on the bank’s balance sheet to lend and issue deposit from. They specialize in either retail banking or SME banking, offering digital checking accounts, savings accounts, personal financial management tools, investment products, credit facilities and foreign exchange services. Popular neobanks serving Indian consumers include Niyo, Freo, Fi Money, and RazorPayX. -
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