Fintech company CredAble, which specialises in supply chain finance, and Aditya Birla Finance Limited, announced a strategic partnership aiming at transforming Micro, Small, and Medium Enterprises (MSME) lending in India, through a press note released on Wednesday.
The companies aim to revolutionise the MSME financing through this partnership by leveraging technology and advanced analytics.
With the help of CredAble’s advanced solution, ABFL has witnessed an increase in lead flow, with nearly 80,000 leads sourced in the past 6 months, as per the press note. Additionally, it has enabled the creation of a database for an NBFC such as Aditya Birla, providing analytics for cross-selling various products like Merchant financing, top-up loans, and equipment financing.
The implementation has also contributed to scale Net Interest Margins (NIMs). It also helps Relationship Managers to easily manage both manual and digitally sourced leads, showcasing the efficiency of the integrated solution.
Elaborating about the partnership’s significance, Nirav Choksi, Co-founder and CEO of CredAble ssaid, “Accuracy and precision are crucial in the digital lending landscape. State-of-the-art underwriting today involves a fully digital workflow and extensive use of a wide range of third-party data. Entities lacking systems with alternative credit scoring mechanisms will be at a disadvantage in pricing risk effectively and supporting MSMEs competitively.”
“We’re extremely delighted to back ABFL with our underwriting solution that automates the end-to-end lending experience that was previously highly manual. As a result, our digital lending solutions are enabling low-interest credit offerings and faster credit decisions, empowering MSMEs with unprecedented access to unsecured business loans and bringing ‘credit invisible’ customers under the formal financial fold,” he said.
Leveraging advanced ML algorithms, employing in-built analytics tools, and backed by a deep understanding of customer segments, CredAble has developed a suite of innovative financing solutions to cater to small and medium-sized businesses, typically classified as high-risk assets.
Expressing about the MSME lending and the partnership Rakesh Singh, MD & CEO, of Aditya Birla Finance, said, “At Aditya Birla Finance, we are on a journey to empower MSMEs and entrepreneurs, assuring them that we are the financing partner they can always count on. The collaboration with CredAble marks a pivotal moment for ABFL. CredAble’s digital underwriting solution has not only streamlined our lending processes but also significantly improved our efficiency in serving businesses, setting a new benchmark in unsecured business loans for MSMEs.”
The alliance aims to empower MSMEs with accessible and tailored financing solutions, driving sustainable growth for these enterprises. Moreover, the association is a commitment to fostering innovation and co-creation in the financial sector.
