New Delhi, 11 Jan (KNN) According to a study by RazorpayX, one in every 2 small businesses are in consensus that limitation in resources and lack of knowledge are the two major challenges to their digital transformation aspirations. 

Their findings include more than 50 per cent of SMEs demanding easier and faster access for loan approvals and verifications. 

They also wish for reduction in time spent on data entry when it comes to payroll, and want a unified view of financial transactions to check and improve visibility of overall business health and identify hiccups early on.

The study is titled as ‘SME Banking is Broken: Will India’s Promising Neobanks Fix it?’. 

Its objective is to understand the various problems faced in managing financial operations, slow adoption of digital solutions and its impact on MSMEs.

To help the sector, it attempts to address some important question pertaining to digital adoption by SMEs and what is stopping them from modernizing their finance function

It also highlights the urgency for SMEs to transform their finance function in the digital space. 

One of its findings is the annual average loss from legacy systems dependence being INR 67 lakh (per SME, annually) which equals 1,689 hours worth of man hours per SME, per year. 

There is sense of fear among 45 percent SMEs from manual errors due to the dependence on traditional processes. 

Over 56 percent SMEs reported that they wasted time from deploying resources for repetitive tasks. 

When asked about spending significant time (an average of 1446 hours) on financial operations and repetitive tasks, 44 percent SMEs complained referring to it. 

However they have realised that they need a smooth business banking solution which will enable them to focus on core business activities.