The banks could as well leverage big data, data analytics, SME friendly applications, etc., in effectively lending to MSME segment while remaining compliant with extant KYC norms and appraisal & monitoring principles and reduce their intermediation and compliance costs. Whether to do so inhouse or through a collaboration is a business judgement that individual banks need to make. 13.
Despite some inherent advantages that the fintech players enjoy, it is not a one way street for them. The fintech companies do not have a big client base of their own and without the expertise to navigate the regulations and licensing discipline of the finance industry; they can’t go very far on their own.