Fintech platform is bringing about a revolutionary change in the manner in which loans are processed by banks and lenders. Microfinance is reinventing itself in the Fintech era with a hassle-free process and innovative products to attract new customers, thereby challenging offerings from traditional financial organisations. Fintech use Artificial Intelligence and advanced machine learning algorithms to rate creditworthiness and promote an ecosystem where innovative products reach customers via cost-efficient digital channels.
Fintech Platforms to uplift services in Microfinance
Fintech platforms lay specific importance to digital data available in an ecosystem like bank transactions, cash flow, and importance is given to company ratings from credit reporting agencies. While collating all this information and draw up algorithm-based scores on each application hence the offer is made to the borrower in lesser time. The platform reduces the workload of an underwriter in understanding a customer’s financial behavior and thus determining loan eligibility. The entire process is automated, resulting in significant cost and time savings and happier customers. This is made possible by using cost-efficient infrastructure and emphasis on cloud capability and analytics.
The customer centric approach of Fintech
The ability of Fintech firms to understand customer needs precisely and offer quick loans at competitive rates draws SMEs towards them. These firms act as a partner to the business with their ability to offer competitive service offerings compared to traditional lenders. Customer-centric innovation triggered by Fintech firms is here to stay and well received by SMEs around the world. How the traditional lending institutions will act against this threat and innovate to come up with a new plan is something to wait and watch. Fintech lenders have a human-centric approach to lending, contrary to a time-consuming cumbersome process by traditional lenders. Fintech lending firms have designed the entire process focusing on the customer and their needs.
- To start with, Small Medium Enterprises (SMEs) can apply for business loans anywhere through any device and at any time. They need not carry heaps of physical documents to any branch; rather they can upload minimal documents at their convenience.
- Fintech platforms employ smart algorithms to read through data from various sources such as cash flow, net earnings, the background of owners, location and other factors and determine creditworthiness within lesser time.
- With Fintech applications, loan providers do not take a long time to disburse approved loans and there are no prepayment penalties, unlike banks. These unsecured loan costs can be further brought down if the borrower selects a right product and takes up flexible repayment plans.
Tapping the untapped market enabling growth of SMEs;powered by Fintech
An unsecured business loan at right time can help SME’s to take care of routine business expenditure and can be useful for business expansion activities. Traditional financial institutions adopt a cautious process when make small-unsecured loans and moreover they prefer loans only against collateral. So there is a greater need for adequate financial support for small and medium enterprises.
Microfinance organisations are reaching out to unbanked people and providing a valuable service. With Fintech platforms MFIs can increase their reach to a large number of households and small businesses at affordable costs. Fintech platforms eliminates operational costs due to old legacy systems that require a lot of manual intervention and data entry, in addition to time and labor making an appropriate option.
Fintech strongly believes in financial inclusion for all, particularly for the underserved. Our solutions will enable your Direct Sales Agents to enter customer application data directly into the system when they visit customers on the field, bypassing the need for manual data entry at a later stage. The automation features save you cost, streamline the process and make it quicker. Fintech will enable you to compete with the banks and manage the same complexities but at a fraction of the cost and in a much more agile technology platform.
NanoBnk specialises in equipping MFIs with technology that allows loan officers to work more efficiently and cost-effectively. We can assist in setting up Fintech platforms as per your organisation requirements. Contact here.