Black Friday Sale! 50% Off All Access

This Banker Explains Why Confluence of Fintech and Banks is Unavoidable Ravindra Prabhakar Marathe, Chief Executive Officer and Managing Director, Bank of Maharashtra, shares how they are addressing the needs of SMEs while adapting to new age technologies

By Vanita D'souza

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Entrepreneur India

What Kind of Support is the Bank Providing to the Micro, Small And Medium Enterprises (MSME)?

SMEs and MSMEs have contributed greatly to the economic growth of the country. However, many emerging and existing SMEs and MSMEs today are in need of finance to get ahead. Understanding the importance, Bank of Maharashtra offers various products to cater to the requirements of SMEs. Various schemes which have been launched in this respect are FASS (financial assistance to service sector), Maha MSME Project Loan Scheme, Maha MSME Machinery, Equipment Loan Scheme, Maha MSME Cash Credit Scheme, Maha MSME Collateral Free Term Loan Scheme, Maha MSME Collateral Free Cash Credit Scheme, etc.

What is the Total Size of Your Loan and How Much Does SMEs Contribute to it?

Our total loan size is INR 10,4,897 crore, out of which loan size under SMEs is about INR 18,994 crore (18.11 per cent).

Do You Have Plans to Get Into Start-up Financing?

New emerging ideas and business models actually help in creating a better business and social eco-system, but as funding can become a hindrance for these start-ups into developing a full-fledged business, we at Bank of Maharashtra encourage them through our schemes. Start-up India and Prime Minister's Employment Generation Programme are two such examples. Through the Start-Up India scheme, we provide composite loan (inclusive of term loan and working capital) between Rs 10 lakh and up to Rs 100 lakh.

And What About Embracing New Age Technologies Like Blockchain and Artificial Intelligence (AI)?

We are exploring the new technologies including blockchain and AI. The bank is a part of the BankChain group (a group community of banks for exploring, building and implementing blockchain solutions). Formed in February 2017, State Bank of India (one of the largest banks in the world) was the first member of the BankChain which now has 30 members globally.

Lasty, What is Your View on Fintech - Do You See it as a Disruptor or Collaborator?

Technology helps make life easy, and evidently the banking, financial services and insurance sector is also following suit. Usage of fintech solutions not only help banks in serving its customers better and faster while being transparent and cost effective, but also helps customers make hassle-free transactions. A confluence of fintech and banking is in a way unavoidable, but also beneficial. Going digital has become almost second nature after demonetisation. The government enabled Unified Payment Interface (UPI) for easy transactions across banks, and our bank was one of the first banks to get integrated with this system.

(This article was first published in the February issue of Entrepreneur Magazine. To subscribe, click here)

Vanita D'souza

Former Senior Correspondent, Entrepreneur India

I am a Mumbai-based journalist and have worked with media companies like The Dollar Business Magazine, Business Standard, etc.While on the other side, I am an avid reader who is a travel freak and has accepted foodism as my religion.

Business News

Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market 'Go Ballistic'

Corcoran said she praying for lower interest rates and people are "tired of waiting."

Starting a Business

Why Are So Many Course Creators Struggling if It's 'Such an Easy Business'? Here's the Truth Behind the $800 Billion Industry

Creating an online course is so easy — at least, that's what many "gurus" would like you to believe. There's a lot of potential in the $800 billion industry, but here's why so many course creators are struggling.

Money & Finance

Why Donald Trump's Business-First Policies Trump Harris' Consumer-Centric Approach

President Donald Trump's pro-business agenda is packed with policy moves encouraging investment to drive economic growth. The next Congress has a unique opportunity to support entrepreneurship and innovation, improving U.S. competitiveness with the rest of the world.

Business News

The Two Richest People in the World Are Fighting on Social Media Again

Jeff Bezos and Elon Musk had a new, contentious exchange on X.

Growing a Business

Build a Business That Will Sell: From Valuations to a Successful Exit

Join us for this free webinar and learn how to develop a business that buyers will find irresistible.

Real Estate

Why Real Estate Professionals Should Prioritize Social Responsibility

Integrating social responsibility into real estate can foster community change, build trust and drive long-term business success.