Advantages of Digitalizing Your SME Loan Process
Covid19 has contributed to the digitalization of the SME loan process as people have often started using their smartphones. Apart from SME lending, other lending and financial transactions have increased worldwide as digital technologies have made the lending process more fun and simplified. Hence, banking and finance firms are looking for various solutions to digitalize their operations.
Banking and non-banking finance companies require digital assistance to overcome competition and defend their position in the market. The market of digital lending platforms in India will be $732 million in 2022. It indicates a notable growth in demand for digital lending services and associated businesses.
What is SME Loan Digitalization?
Small and medium enterprises (SMEs) need a little investment before starting their business. So, they approach various online/digital lending services these days. SME loan is also a part of such services. Banks or finance companies can cater to their customers by digitalizing these loans more effectively. It saves a lot of time processing loan applications for multiple customers through digital platforms like Novopay, Lendingkart, Navi, KreditBee, etc.
People can get easy loans through their mobile phones nowadays. They don't need to visit a financial institution or bank as such. Earlier, the processing time of SME Lending usually took 4 to 5 weeks. Digital platforms let it complete within a few minutes.
Digital Lending platforms are also helping renowned banking and financial firms reach out to their customers and do regular transactions effectively. Let's recall the leading advantages of the digitalization of SME loans!
Benefits of Digitalizing SME Lending:
While running a banking or financial institution, you may need to serve different small and medium-scale businesses. They’re very high in numbers because most entrepreneurs start with a small business. Digital lending platforms can help you handle various SME clients and serve them according to their business needs. Enlisted are some advantages to recall:
1. Simplifies the Process:
Everything can be simplified, from digital onboarding to field force management. The more you simplify your loan distribution process, the more customers and SMEs you can target in a specific period. It also encourages borrowers to remain in touch with you and re-consider your services in the future.
2. Lowers PaperWork:
Though you’re not supposed to, you can indirectly contribute to environmental protection by going digital. An environment-friendly approach can let you impress many new customers locally and globally. One can provide Digital SME loans without wasting a single sheet of paper, and you may impress new customers.
3. Saves Time & Cost:
As discussed earlier, SMEs are very high in number compared to large-scale businesses. Moreover, with the introduction of smartphones, the start-up culture is getting popular everywhere. Banks and financial bodies require ample time to serve various customers and SMEs. Moreover, digitalization helps to overcome the cost of stationary.
Customization leads to client retention and satisfaction. Well-customized software and platforms bring more customer participation to your online lending platform. You may also customize as per various loan requirements of small and medium enterprises.
5. Better Conversion:
Lead generation is just a result of a simplified work process. A complicated buyer journey can not bring desired leads. Especially when you’re offering loans on digital platforms, make sure to simplify the procedure as much as possible. So, to get a higher conversion rate, you must digitalize your SME Loan process today.
Novopay is a popular digital SME Loan and lending platform that has established healthy relationships among many renowned banks and their clients looking for financial support. Founded by Srikanth Nadhamuni and Gautam Bandyopadhyay, the company is popularly known for offering end-to-end integrated digital lending services to banks, IMFs, and retailers.
Novopay (a Khosla labs venture) was founded by Srikanth Nadhamuni (Founder - CTO Aadhaar) and Gautam Bandyopadhyay (a FinTech industry veteran and former Head of Finacle Innovation Hub at Infosys) . Backed by Vinod Khosla, the legendary silicon-valley venture capitalist, Novopay has built one of the most resilient, scalable banking platforms in the industry.
So much so that our first 2 customers were the largest private banks in India and are enabling 7000+ branches, 60 million transactions and 17,000 internal users with our platform.
To know more about the banking platform, reach out to firstname.lastname@example.org