Historically, poor credit penetration results in the marginalised sections of society like low-income households, women and Micro, Small, and Medium Enterprises (MSMEs) being excluded from the formal lending channels. However, the MSME sector plays a critical role in the economic development of India. The share of MSME Gross Value Added (GVA) in India’s Gross Domestic […]
5 Ways a Cloud-Based Lending Software Can Transform Small Business
The Micro, Small and Medium Enterprise (MSME) market has been disadvantaged in the traditional banking ecosystem. Due to various factors, banks have prioritised credit to corporations and big businesses over small businesses. According to statistics, India has a total of 633.9 lakh MSMEs in India, comprising 630.5 lakh micro-enterprises and 3.3 lakh small businesses. The […]
The Impact of Coding in Loan Management System
Coding is an integral part of many everyday transactions and interactions for most people. It powers activities ranging from making payments on E-commerce sites, booking a cab or using Bluetooth in the car. As per a study by IBM, 65% of organisations use coding to reduce manual and repetitive tasks. As coding becomes pervasive across […]
Choosing the Right Credit Underwriting Software for Lending Needs
Underwriting is an important process in lending operations. A lender’s ability to predict creditworthiness seals the fate of the loan. Whether it will be repaid promptly, or become a non-performing asset, or worse still result in loan fraud, is an outcome of underwriting efficiency. Manual underwriting interventions are no longer sustainable, no matter how many […]
6 Ways Tech in Finance is Transforming Microfinance Institutions
The microfinance sector has evolved rapidly since Muhammad Yunus pioneered the movement around three decades ago. India, one of the fastest-growing economies in the world, banks on microfinance for sustainable growth and economic development due to the significant rise in the number of micro, small, and medium (MSMEs) seeking swift, organised, and streamlined access to […]
Challenges of Invoice Financing for Lenders and its Alternatives
There is usually a delay between the sale and receiving payment, which, for some businesses, takes longer to settle. To counter this issue, companies offer credit services to boost their sales, edge out competitors and build better customer relations. However, in the meantime, the business also needs to continue its daily operations as usual, which […]