The 30th Standing Advisory Committee (SAC) in Coimbatore on October 27, 2025, highlighted the urgent need for Micro, Small, and Medium Enterprises (MSMEs) lending models to shift from a traditional collateral-based approach to cash-flow-based lending. This strategic realignment is critical for overcoming the current challenges faced by MSMEs. As per a survey of 2,000 MSMEs, […]
Understanding Cluster-Based Lending Approaches for MSME Finance
The Government has designed policies and taken steps to encourage financial institutions to provide adequate and timely credit to MSME finance to facilitate their development. Reports suggest 27.4 million MSME loans were sanctioned during the financial year 2024, amounting to Rs 54.2 trillion, a growth of 19.3 per cent in volume and 5.4 per cent […]
Unmasking Financial Fraud: How Finezza Empowers Lenders
The financial fraud scenario in India is becoming more complex with the increasing sophistication of threats. As per RBI, banking frauds shot up 166% in FY24, with over 36,000 cases reported. This represents millions in losses and countless hours spent tracking fraudulent schemes that plague the lending sector. Digital lending has transformed credit access in […]
Proactive Credit Risk Management: Developing an Early Warning System
As per a report, as of March 31, 2023, 2,623 borrowers were classified as wilful defaulters in India and owed Rs 1,96,049 crore to the banks in India. This highlights the inherent risks lenders face. Therefore, financial institutions (FIs) need robust credit risk management to minimise risk and boost returns and productivity. An early warning […]
Open Banking vs Platform Banking: Implications for Traditional Banks
Traditional banks often struggle to adapt due to a lack of innovation and personalised services, leaving them vulnerable to disruption. Open banking addresses these issues by securely enabling data sharing between banks and approved third parties via application programming interfaces (APIs). This collaborative method sharply contrasts with traditional banking’s siloed data model. India’s open banking […]
Embedded Finance: Security Challenges and Some Emerging Solutions
The traditional banking setup has seen a complete overhaul with increasing technological advancements. It may seem like a new world, from loans in 59 minutes to digital wallets. All this has been made possible by embedded finance, which allows the integration of financial services into non-financial services. Its ecosystem is anticipated to grow at a […]