The financial lending sector has and continues to stay at par with the latest technologies and trends. MSME companies have had a difficult few years as digitalization and implementation of advanced technologies have progressed. A constantly increasing number of users want fast access to services as well as the massive growth in the quantity of data we consume. These are some powerful factors driving some of the most important financial developments.
Let’s take a look at some of the key technologies that will influence MSME lending in 2022:
- Mobile banking – Over 1.7 billion unbanked population owns a mobile phone. So, mobile banking should be a prime focus for financial companies wanting to get their products into the hands of clients.
- Robotic Process Automation – Robotic Process Automation (RPA) is a technology that may help financial firms save up to 25%-30% of their costs. Financial services organizations can use this technology to transform processes that are both monotonous and data-heavy. RPA will be mostly employed in the banking industry to eliminate manual reliance and delay while also increasing efficiency.
- Data Analytics – Businesses may use data analytics to successfully handle corporation-wide data and get meaningful business insights that aid decision-making, innovation, risk mitigation, fraud prevention, and more. Financial institutions are projected to use data analytics to acquire, analyze, and regulate data in the future years to construct more productive, sharper businesses and offer newer opportunities.
- Cloud Computing – Cloud computing makes it easier and less expensive to launch initiatives based on cutting-edge technologies such as blockchain and artificial intelligence. Banking and financial service companies have already begun transitioning to the cloud due to the obvious benefits it provides in terms of scalability, security, and resilience at a time when clients are increasingly demanding digital services.
- Cyber Security – Customers’ personal and financial data is handled by financial firms, which is sensitive. In a linked environment, data is, unfortunately, the most susceptible asset. Access delegation tools and frameworks not only keep data safe but also assist organizations in meeting financial regulatory requirements.
MSMEs throughout the world can now see their demands being better addressed as fintech takes care of analyzing and automating essential operations. Microbusiness owners may expect fine-tuned loan processes to become more prevalent. Their capacity to connect with technology and adapt to the newer, more convenient choices presented is evolving as well.
By leveraging AI/ML-based solutions to streamline our credit rating process, we have been able to go further than standard lending rules at Aye. We’re focusing on data elements, including consumer demographics and enterprise-level data, to perfect our ML model. We want to categorize clients into different groups based on how likely they are to repay their loans. We have been able to effectively assist Indian micro-enterprises by adopting new technology and integrating them into the standard economy.
All technological innovation must be devoted to evolving in cahoots with the attitudes and fundamental concerns of their target audience, in this case, MSMEs.