Synopsis
Compared to international markets, MSMEs in India, due to the lack of access, have relied more on informal sources of credit.
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MSMEs need the perfect convergence of accessibility, affordability and availability for a credit uptick.
The World Bank estimates the current credit gap for MSMEs in India to be at a whopping $380 billion. The gap, a result of challenges both on the demand and supply side, has created opportunities for different models of fintechs and NBFCs to come into the market and address this gap.
To know more on how banks and
fintech can address this gap,
Technology is a great enabler. Ask any founder in India s burgeoning startup ecosystem and they would agree that without technology and innovation, their company would probably not exist. Interestingly, several traditional and legacy companies may also say the same today.
When it comes to the financial sector, technology has made possible functions that would have been unimaginable a decade ago. Like tapping your credit card to pay for your groceries. Or scanning a code to pay your cab fare.
Deliberating on what the future holds for digital payments in India, Sajith Sivanandan, MD & Business Head - Google Pay & Next Billion User Initiative, Google India, and T.R. Ramachandran, Group Country Manager - India & South Asia, VISA, said the primary requirement was to make payments seamless.
Regulating the financial sector - a challenge for the sector, but must for consumer confidence
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Last Updated: Feb 26, 2021, 04:33 PM IST
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Synopsis
Panellists at the ET India Inc Boardroom emphasised the need for banks to invest in digital technology to bring down costs, and drive better delivery.
ET Online
Banks, NBFCs, asset management companies and insurance providers have, for long, dominated the narrative when it comes to the financial sector in India. However, as the BSE Sensitive Index, or Sensex, touched the magical 50000-point mark, there was one sector that suddenly found itself in the limelight. The Indian Broking Industry.
To make or not to make. If the Bard would allow this one indiscretion, this is a question that has plagued India Inc for decades. Factors like cost of production, quality and demand have together tilted the scales, often in favour of imports. Now, with the push for Make in India, there is a renewed focus on manufacturing at home, as against assembling or importing. While this has advantages across the value chain, it has large disadvantages too.
In a discussion on this issue at the ET India Inc Boardroom, R.C. Bhargava, Chairman,
Maruti Suzuki India, said the biggest hurdle for manufacturing in India is high costs.
The ET India Inc Boardroom panel discussed the learnings that business leaders can take from the pandemic. All panellists said going digital is the way forward and working solutions will become hybrid.