Since mid-August, financial markets have been facing substantial volatility, following China’s decision to change the methodology for setting the central fixing rate of the yuan, which led to a 2% devaluation in China’s currency, its biggest daily move since 1994.
With the aid of technology there can be a paradigm shift in the approach in lending to MSMEs. The banks can collaborate with Fintech players for either lending directly or through these fintech companies. On the other hand, the MSMEs can adopt technology for scaling up their businesses, achieving operational efficiencies and thereby cutting costs.