“Fintech loans have changed the perception of credit with solutions such as short-term loans, mobile credit”

In the context of the 2007 financial crisis, the banking system put in place strict measures while providing credit to consumers and businesses.

Credit and financing for MSMEs: Fintech, an amalgamation of finance and technology, is revolutionizing the world with disruptive innovations and has already created a major positive impact in the financial sector by increasing credit penetration with innovative instant and short-term credit products. He reinvented the processes that traditional banks and financial institutions used to go through. According to EY’s Global Fintech Adoption Index 2019, fintech adoption in India has increased to 87% compared to the global adoption rate of around 73%. FinTech is one of the fastest growing industries in India in terms of job creation and business growth. According to a NASSCOM report, the fintech software and services industry is expected to reach $ 45 billion by 2020, with a CAGR of 7.1%.

India is emerging as the second largest fintech hub. FinTech was introduced to challenge the existing process in the financial segment with cutting edge technology that has proven to be instantaneous, transparent, secure and economical, and now factors such as rapid digitization, demonetization, lockdown due to the pandemic and also the increasing use of internet and smartphones, as well as the penetration in semi-urban and rural areas, are accelerating the acceptance of fintech by customers.

With innovative products and services such as real-time payment systems, mobile banking solutions, etc., fintech is not only fundamentally changing the payment system, but also changing the lending landscape by providing easy access to credit. , even to the most novice in matters of credit and credit. customer loyalty. The advent of fintech in lending has changed the perception of credit with the introduction of innovative solutions such as short term loans, instant mobile credit, simple and flexible EMI options, paperless documentation and no credit score requirement.

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With fintech targeting the millennial population with its latest innovations and services, customers are more comfortable with digital technology and are now turning to mobile apps to meet their financial needs. In addition, it prompted them to seek out services characterized by simplicity, ease of use and real-time availability. Digital lenders are now ready to capitalize on this advantage by delivering a rapid onboarding experience and making quick decisions in seconds. This is mostly attributed to their reliance on AI-powered subscription processes and mining millions of different data points.

With their innovative products and services, fintechs are delivering a total digital experience to their customers and revolutionizing end-to-end digital services. Their ways of using technology to create innovative financial products, deliver accurate customer service, and engage more millennials with them. Fintech companies understand the unique demand of customers and have recognized the need for customer-centric solutions by providing convenience, customization, transparency, accessibility and ease of use to millions of their customers.

Yogi Sadana is the founding member of the Fintech Association for Consumer Empowerment (FACE) and CEO of CASHe. The opinions expressed are those of the author.

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