There has been a significant shift towards greater emphasis on rural development post-pandemic. In order to alleviate distress and improve employment and other earning opportunities for rural residents, the Ministry of Rural Development has implemented a number of new policies.
Apart from this, there are many platforms, especially fintech companies, which are actively changing the landscape of rural India. These platforms do things like provide financing to small businesses and settle the business landscape, create digital awareness and encourage people to transact online, and provide job opportunities through training.
Below is a list of FinTech startups that contribute significantly to the ecosystem and should not be overlooked.
1. Biz2X: Biz2X is a SaaS platform that enables financial institutions to provide a personalized online lending experience to their small and medium business customers. Biz2X helps banks streamline their lending processes, including authentication and document management, by providing proprietary technology that helps make fast credit decisions and disburse loans in days, instead of weeks and of months.
Particularly in the SME lending sector, a major impediment to growth is the lack of adequate access to finance. Most banks find MSMEs and their credit history unsatisfactory to provide financial assistance. Being one of the biggest contributors to the economy, MSMEs have to deal with multiple financial problems and get stuck in a financial cycle of getting loan approval while going door to door. one bank to another.
Additionally, in the traditional banking system, the average “decision time” for small business and enterprise loans is between three and five weeks.
The average “time to cash” is nearly three months. So, Biz2X leverages technology to help banks make their loan processing more efficient and allow them to make smarter loans. The Biz2X platform offers end-to-end loan management, loan-level pricing functionality, a suite of risk analysis tools, credit policies configured to banks’ needs, cross-device compatibility , among others.
2. Aye Finance: Aye Finance is the only pan-Indian large-scale player that offers low-cost unsecured business loans to a large segment of credit-starved micro-enterprises. Aye has broken into this hard-to-lend segment with its unique cluster-based credit scoring approach and optimally digitized phygital model.
Headquartered in Gurgaon, it has 311 branches across 20 Indian states and has a team of over 4,500 employees.
3. BankSathi: BankSathi helps financial institutions and customers achieve their desired business goals. Based on what they want, what they can’t, and some basic information, this platform provides clients in rural and semi-rural India with investment options.
Customers can choose the best option and are directed to the financial institutions that offer the services they need through this. If you want to impact real “Bharat”, educating and raising awareness in rural India is something you can be proud of.
Its purpose is to help people establish ground rules for managing their finances and taking control of their money. In order to achieve these goals, BankSathi not only hires people from rural India, but also trains and prepares them for employment. People do not have sufficient understanding of money to use financial products wisely. The objective is to inform and raise public awareness of the various financial products and services.
4. FidyPay: The lack of trust was caused by the idea that since the majority of payment processors were located in large cities, they could only serve this population and could not meet their particular needs. FidyPay is unique in that it recognizes that not everyone is comfortable making online payments, cannot afford a smartphone or does not have access to a Internet package.
The solutions offered by FidyPay include, among others, micro ATMs, money transfer services, links, UPI, QR codes, automatic payment, PoS solutions and micro-insurance services. , which can make banking possible in small towns.
The main customers are SMEs and MSMEs, it also works with local governments and lower-tier city residents to raise awareness of digital payments. It is expected that more people in rural and semi-urban areas of India will embrace digital payment as smartphone penetration increases rapidly and data plans become more affordable.