Digital lending and changing landscape of financial inclusion

Digital lending is emerging as a powerful force to reach those who have not been able to access financial services in the past. In India, despite being one of the fastest growing economies in the world and having a dynamic business outlook, lack of equality in access to credit continues to grow, which translates into low financial inclusion. Thus, digital lending has established as a new option of funding.

Innovative products can overcome geographic limitations, reduce transaction costs, and improve transparency. These innovations are especially helping SMEs that are generally affected by funding shortfalls.

The rise of Fintech players is acting as a catalyst for financial inclusion and new age technologies like AI and ML will further drive digital adoption in India. In addition, other forms of Fintech, such as digital payments and regulatory technology (RegTech), provide customers with a faster, more convenient and transparent service.