I think this segment, including the small enterprises, can benefit immensely from the collaboration between banks and the fintech players whereby their other payment records can form a basis for working their credit worthiness. 17. A related aspect I want to highlight is that the smaller players in the MSME segment typically dealt in cash despite having a bank account.
In essence, this helps strengthen the perception that a central bank is able to fulfil its mandate of ensuring price stability. In other words, the purpose of more in-depth central bank communication is not only to reduce uncertainty, but also to bolster central bank credibility.