Government support for FinTechs will help MSMEs access working capital

Government support for FinTechs will help MSMEs access working capital

New Delhi, 12 Feb. (KNN)Government support to the FinTech sector will significantly increase access to working capital for MSMEs, according to the report by BLinC Invest.

According to the study, only 20% of Indian SMEs have access to credit, while insurance penetration is only 3.7%.

He also identified India’s growing fintech sector as the 3rd largest country emerging in the international market.

The Indian FinTech market is estimated to be worth USD 31 billion in 2021, spanning all sub-segments, with total FinTech sector funding in India growing at a CAGR of 14.81%.

The report also states that over the same period, more than 25% of all seed funding in India was directed to FinTechs.

He highlighted the growth seen by neobanks as traditional banking players grapple with technology-driven operations.

With vast potential to revolutionize the SME lending industry, as it is largely underserved due to a lack of public database, uniformity in compliance statements and audited cash flow statements , according to the report. (KNN Office)

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