Shreyas Jani’s Post

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| Lead - Financial Services | Engaging with regulated financial services entities to drive payments innovation | Strategic Partnerships | Podcast Host - Delivering In-depth domain insights

MSME Fintechs Emerge as New Champions in Digital Lending Landscape!! 🙌🏻 Here’s an overview of what’s up in the industry! Shift in Focus: Digital lending is transitioning from consumer credit to spotlighting business-focused fintech lenders like Indifi, Lendingkart, Aye Finance, and Kinara Capital. Increased Collaboration: Major private sector banks are partnering with fintechs to tap into the unsecured business credit market, especially for MSME loans. Regulatory and Economic Influences: Recent regulatory actions and macroeconomic changes have made unsecured consumer loans less appealing, pushing lenders towards MSME lending. Growth in Digital Lending for MSMEs: Fintechs have seen a surge in MSME loans, with significant loan volumes sourced in the sub-Rs 1 lakh business loans category, highlighting the growing digital influence in this sector. Market Size and Potential: Despite the focus shift, business lending remains smaller than consumer lending, indicating significant growth potential. Regulatory Changes Boosting MSME Lending: Adjustments like increased risk weightage on unsecured consumer lending are redirecting lenders' focus towards MSMEs. Challenges and Opportunities: Teething issues like physical KYC requirements present operational challenges, while digital sales platforms for small businesses offer new opportunities for digital lending. Financial Health of Fintechs: Improved financials among MSME-focused fintechs are attracting traditional lenders for co-lending partnerships, highlighting a positive trend towards healthier fintech ecosystems. #fintech #fintechnews #msme

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