By Pravas Chandragiri
However, this challenge has been identified by emerging Fintechs, who have been striving to bridge this lacuna of credit with their innovative solutions. By harnessing the power of artificial intelligence
Enabling easy access to credit
For several new small businesses, gaining access to credit is a challenge owing to little or no credit history and the stringent requirements of traditional lenders. However, the existence of these new-age Fintechs has been beneficial for SMBs. These firms leverage AI algorithms that go through vast amounts of data to identify patterns, preferences, and risk profiles, which makes it easier for lenders to anticipate clients’ needs. Then this data is utilised to tailor the financial solutions to cater to the specific requirements of the businesses.
Making bill payments easier
Thanks to technological advancements, long gone are the days of hardcopy bills and daunting stacks that requires vigorous sorting. Fintechs have empowered business owners to track their transactions or credit at their fingertips via their comprehensive application. Automatic draws or notifications ensure businesses never miss a payment, and it helps them allocate their capital in a better manner. The Fintechs have also been helping small businesses streamline their invoicing by enabling them to issue digital invoices to retailers, which has transformed the way transactions are recorded, monitored, and maintained.
Speeding up the time to process credit
Fintechs have accelerated the time to process the credit for the SMBs. By using AI algorithms, the loan origination systems have become more efficient as they automate manual processes and reduce turnaround times (TAT). The system analyses the credit history and applicant data to assess the creditworthiness of potential borrowers. Moreover, AI algorithms can be customised by fintech companies so that businesses are pre-approved in no time. Furthermore, several hurdles, such as the requirement of a large amount of paperwork for loans, have been cleared, which has made businesses attain credit in a swift manner.
All things considered
Technologies such as AI have transformed business operations for Fintech, which in turn is reshaping financing for SMBs. It has not only enabled easier access to credit for small businesses but has also made billing easier and accelerated the speed of loan disbursal. As we move forward, the AI technology
The author is founder and CEO, Soptle