This Industry Expert Explains Why Fintech Holds a Bright Future For Small Businesses Anchit Singh has focused on developing new products, building credit models & establishing the growth engine through partnerships and marketing

In the wake of the pandemic and global economic downturn, small businesses have been hit the hardest, as growing inflation and reduced consumer spending squeeze their margins. To make matters worse, banks and lenders have become more risk-averse, making it increasingly difficult for small businesses to secure loans. The Small Business Administration (SBA) reported that the number of small business loans approved in the first quarter of 2023 was down 10% from the same period in 2022. However, the emerging market of SMB-focused financial technology (FinTech) companies presents promising possibilities for these businesses. Anchit Singh, the Head of Product & Credit Strategy at Fundbox, an AI-driven financial platform for small businesses, explains the potential of technology-driven SMB Fintech as an alternative to traditional banks.

Anchit Singh has focused on developing new products, building credit models & establishing the growth engine through partnerships & marketing. His multidisciplinary expertise in the fintech domain has given him a comprehensive understanding of the various aspects of the SMB Fintech segment. Anchit asserts that fintech platforms powered by AI can significantly aid small business funding. By analyzing vast amounts of data, including financial records, credit history, and market trends, AI-driven platforms can assist in the underwriting process for small business loans. Furthermore, recent advancements in generative AI can enhance the speed and efficiency of loan applications and approvals by automating repetitive tasks and aiding in fraud detection and prevention. Generative AI can also improve personalized customer experiences in small business lending and payments by generating tailored business insights based on customer data and preferences.

Anchit believes that the future of SMB fintech looks promising. With technological advancements and increasing demand for financial services tailored to the needs of small and medium-sized businesses, the sector can expect continued growth and innovation. Anchit highlights that companies like Fundbox will concentrate on providing user-friendly digital platforms, streamlining financial processes, and offering a wide range of services such as lending, online payment, and other tools to manage working capital.

As an industry expert, Anchit Singh closely monitors the performance of the SMB Fintech sector globally and assesses its potential in large economies like India, where SMBs play a pivotal role in economic growth. He explains that one of the key drivers of the future of SMB fintech in India is the government's focus on digitalization and financial inclusion. Initiatives like the Digital India campaign and the Unified Payments Interface (UPI) have facilitated the widespread adoption of digital financial services, creating a favorable environment for fintech startups to develop and offer solutions tailored to the specific needs of SMBs.

Moreover, the increasing adoption of smartphones and more ubiquitous internet connectivity has opened up new opportunities for SMBs to access financial services. Mobile-based fintech solutions enable businesses to manage their finances, access credit, and make seamless transactions, thus enhancing their operational efficiency. Additionally, the rise of alternative lending platforms and peer-to-peer lending has provided SMBs with easier access to capital. Fintech companies are leveraging technology to assess the creditworthiness of SMBs, enabling them to offer quick and customized financing options.

In conclusion, AI-driven SMB Fintech holds a promising future in providing loans and financial assistance to small businesses, not only in major economies like the USA but also in every kind of economy.