Here’s Why Digital Lending is the Future for Banks, MSMEs and SMEs
Over the years, lending has become synonymous with long bank queues, lengthy paperwork processes, and delayed approvals. But with digital lending, this scenario has witnessed a 360-degree transformation.
A fruitful integration of finance and technology, digital lending has opened the doors to quick approval and increased productivity for MSMEs and businesses in need of credit. With user-friendly applications and smart algorithms, FinTech companies are revolutionizing the lending landscape, making borrowing incredibly accessible, transparent, and convenient. Let’s look at some reasons why digital lending has gained such momentum lately
Evolving customer needs
Today, MSMEs interact with customers whose needs are constantly evolving. Customer satisfaction is no longer restricted to high-quality products and services – companies also need to excel in terms of customer service, delivery, product personalization, sustainability, and several other such criteria. Credit, therefore, becomes an indispensable aspect of satisfying such expectations.
Waiting for loan approvals and visits to the bank need to be restricted, as business owners need dedicated time and effort to grow their ventures. In this scenario, digital lending becomes a boon that not only saves time and effort but also enhances credit access considerably.
The advent of disruptive technologies
It’s the industry 4.0 era – a generation characterized by artificial intelligence, predictive analytics, machine learning, application user interface (API), and a host of other cutting-edge digital transformation solutions. Consequently, we are witnessing the emergence of several FinTech apps that integrate all the software systems of a company and expedite the lending-borrowing process. Such solutions not only accelerate borrowing for MSMEs but also streamline the lending process significantly for banks and financial institutions.
Increased revenue potential from MSMEs and SMEs for banks
While cost optimization is an essential aspect for banks to grow and become profitable, they can no longer solely rely on it. What banks need today is new revenue generation. And MSMEs, SMEs and other emerging private companies are among their major sources of income and vehicles for profitability today. Simplification of the lending process through digital platforms can become a gateway for banks and financial institutions to get these companies on board as their clients, giving their revenue a much-needed boost.
Data-driven analytics and reports
There’s no denying the fact that data is everything today. And accurate reports and analytics can streamline any business process tremendously, facilitating unprecedented operational efficiency and precision. Leveraging predictive analytics, modern FinTech applications provide highly accurate analytics through detailed reports, highlighting customer trends for banks and financial institutions. Such reports help banks enhance their services considerably and understand changing trends and requirements better.
Besides being a supply chain finance software application, the Zuron app helps banks and financial institutions seamlessly connect with their customers, increase their revenue systematically, and increase work efficiency significantly. On the other hand, our app also enables MSMEs to gain easy credit access while avoiding frequent bank visits and approval delays.
Our payables management, receivable financing, and dynamic discounting services help all entities in the supply chain, from manufacturers and distributors to banks/financial institutions and private organizations (including MSMEs and SMEs). Connect with us to know more about our bespoke FinTech services!
