India is one of the largest countries in the world to embrace digital revolution. Evident across every stream, the digital landscape in India is expanding exponentially in every sector. Education is seeing a tidal shift in the way it is conceived thanks to the introduction of digital transformation. The same can be said about healthcare. And about the on-demand economy. This process of embracing digital trends is pivotal in shaping India to be a future superpower.
Fintech in India
However, the financial services industry has seen little or no change in the last couple of decades. This remains one of the largest obstacles in India’s pursuit of the coveted global superpower status. Though banks and financial institutions have been present in the country for over 200 years, its benefits have to date not trickled towards the marginalized communities of the country. While urban India is welcoming different financial transformations, the same cannot be said about the other parts of the country. Trying to fill this gap is fintech or financial technological services. And this can be seen in the way fintech has influenced small and medium-sized enterprises (SMEs). With 9.2 million SMEs in the country, contributing to the nation’s economy significantly, there is a dire need for fintech to help them in their journey towards growth. But how can a fintech solution in India benefit SME owners? Let’s find out:
1. Introduction of lending alternatives
One of the biggest innovations fintech brought along with it is the transformation in the lending landscape. Numerous small, alternative enterprises in the landscape have emerged that are ready to offer credit to individuals through just a few clicks. Entrepreneurs and business owners now need not wait in long lines, wait for their documentation to be approved, to access any funds that they’d need for business operations. Using verification and validation through transactional information and its history, fintech is offering different forms of lending mechanisms to SMEs. Powered with digital tools like machine learning, data analytics and AI, these fintech organizations are creating a level playing field for every enterprise.
2. Customer-oriented service
Since time immemorial, financial institutions have seen little or no change in customer service. It still functions the old traditional way. With the introduction of fintech organizations, customer experience has taken the front seat once again. Moreover, with stiff competition within different fintech organizations, moments of negligence are rare to come across. In the Indian landscape, fintech organizations like Easebuzz have also started developing solutions that cater to mobile devices that use lower internet bandwidth, pushing its reach, unlike any traditional financial organization.
3. Insight-driven tools and services
Earlier financial institutions had been restricted by strict regulations. This also meant financial services were limited in their offerings. Instead of choosing a customized service, individuals had to mold their requirements around the services that were being offered. Moreover, due to the regulations, no one could find out how the services fared, the satisfaction of the customers, and other aspects. But, with fintech and its tools, collecting the required data to understand users has become simpler. This not only allows in having more relevant services being offered but having a more customized offering that fits one’s requirements. Fintech also enables organizations to have accounting software in place, with data analysis tools, and ensures payments through mobile transactions happen seamlessly. These need-based tools and solutions are highly advantageous for business owners, especially for SMEs.
4. Secure in every step
Financial services as an industry is tightly regulated. And the dynamics even with the surge of fintech hasn’t changed. While the ease of business has gone up, security measures undertaken by these organizations have gone up proportionally too. Thanks to AI, fintech organizations can detect malicious signs and activities in advance and undertake necessary steps to curb the same. Biometric solutions are also on the rise, and with improving technology, institutions are developing tools that reduce risk of fraud while improving identity management.
The fintech sector has seen steady growth in the country, and its influence on SMEs cannot be undermined. Moving hand in hand, with the startup ecosystem, fintech solutions in India have cemented their stance in the country. Easebuzz, a fintech startup from India stands as a testament to this. With its myriad offerings across the financial landscape for SMEs, Easebuzz builds APIs that help integrate any product or service on a web portal or B2B software. With a large market in the country, and its offerings for various SMEs, fintech is here to stay, and we are yet to see the best of it.