Digitalisation in every sector is on boom. However, there are many Small & Medium enterprises not educated about the digitalisation and its benefits.
Credit availability is never an issue, it’s the experience for entrepreneur in getting the credit for their business which makes the difference. In last few years, India is undergoing major shifts in the area of digital. And the biggest impact of digital is happening around the financial side. In an exclusive conversation between Rajesh Gupta, Founder of Cash Suvidha and Faiz Askari, Founder of SMEStreet, cutting edge Fintech trends were discussed.
The edited excerpts:
Faiz Askari: How MSMEs getting equipped for Digital Financial Transactions for their day to day business?
Rajesh Gupta: Since, Demonetisation many ways has been discovered to promote digitalisation in MSMEs. Almost every MSME today are using several methods to go Cashless like Net Banking, IMPS, NEFT, and RTGS, Plastic money (Debit Card, Credit Card, and Prepaid Card) E Wallet ( Paytm, BHIM etc) POS machines, Payment Gateway.
As technology is ever changing today MSMEs can use UPI app through smart phone and today even Aadhar payment app (linked with aadhar card) are becoming handy equipment for MSMEs.
Faiz Askari: What is your roadmap for next 12 months?
Rajesh Gupta: Technology is forcing every organization to re-shape the business strategy. In order to stay alive, leaders need to digitalise organization based on the expectation of clients. Our roadmap is to become completely digitalise which will create more transparency between us and our clients. Even when the client is at other location they can have an access to their loan details. . Launch of our recent Android App is another lap in our roadmap. We do have 4 branches which are going to open in other metro cities in next 3 to 4 months.
Faiz Askari: What development did you see in Fintech Industry from last 2 years?
Rajesh Gupta: Development in Fintech industries is happing with the speed of light. Every day new App, new gadgets are reshaping the Fintech Industry. Transfer of money, paying bills through mobile is the biggest development ever happened. However, recent tie up between banks and Fintech industries are helping individual & business in many ways. Now, days are gone when we have to stand in banks queue to transfer or money deposit. However, all these financial transaction are now on our finger tips. This development has created many business modules, more transparency, customer centric business and trust between the two entities.
Faiz Askari: SME sector still needs awareness on digitization. What kinds of efforts are you doing the same?
Rajesh Gupta: Digitalisation in every sector is on boom. However, there are many Small & Medium enterprises not educated about the digitalisation and its benefits. We as an organization promoting digitalisation of financial transaction through social media platforms, our official web page, blogs, newspaper articles, SMS, phone calls etc.
It is not fake fact that even if an entity is not using fintech for business transactions, it still uses social media, email and other above mention platforms. Even when we process any loan application we ask our client to log in through social media and they also download our app. By this way we are educating them. Our aim is to get appreciated for the magnitude of change that is coming, and how quickly it could occur – and already is in some instances.
Faiz Askari: What kind of financial technologies are influencing the MSME segment?
Rajesh Gupta: The major influence of financial technologies on the MSME segments is “it saves time, it is more transparent, it is convenient for both business and individual, it saves money, and it reduces the chances of error”. Financial technologies have created new opportunities within the MSME sector which is the backbone for the economy and to reduce the unemployment rate.