Govt support to FinTech will help MSMEs access working capital
New Delhi, Feb 12 (KNN)The government support towards FinTech sector will extensively increase the access to working capital for MSMEs, as per BLinC Invest report.
According to the study only 20 per cent of Indian SMEs have credit access, whereas the insurance penetration is just 3.7 per cent.
It has also identified India’s growing Fintech sector as the 3rd largest country emerging in the international market.
India’s FinTech market is estimated to be USD 31 billion in 2021, covering all subsegments with total funding to the FinTech sector in India increased at a CAGR of 14.81 per cent.
The report also states that during the same period, over 25 per cent of all start-up funding in India was directed towards FinTechs.
It has emphasised on the growth witnessed by neobanks as traditional banking players are struggling with technology-first operations.
With vast potential to to revolutionize the SME credit sector, as largely it’s underserved due to a lack of public database, uniformity in compliance filings and verified cash flow statements, said the report. (KNN Bureau)