Building a seamless business function experience for millions of Indian MSMEs

Market overview - MSMEs

There are currently over 63 million Micro, Small and Medium Enterprises (MSMEs) in India, which contribute to around 31% of the country's GDP. MSMEs presently employ more than 50 million Indians and are vital in leading the nation to achieve its goal of becoming a $ 5 trillion economy.

However, the growing sector faces several obstacles, such as the unavailability of adequate finances and a lack of advisory services, modern technology and a skilled workforce. Though MSMEs are a crucial customer segment for banks, many of them often do not receive sufficient support from the banking industry.

Around 36% MSMEs worldwide claim that they have had to resort to alternative sources of finance to fund their ventures. Out of these, about 47% firms did so because they were met with discouragement from banks. Another 29% firms chose alternative financing solutions because of the hassle involved in dealing with a bank. This could be either due to poor customer service or a lack of transparency and adequate resources.

Several business owners also complain that slow bank payments or lengthy banking processes often take up too much of their precious time. This has caused many small enterprises to avoid banks, leading to around 65 million companies or 40% SMEs in developing countries facing a severe deficit of funds. This could impede the growth of this sector, which is vital to the economic development of several nations.

To overcome this problem, governments and financial institutions need to draft new policies and develop innovative tools, which serve the interests of these enterprises. The World Bank has launched an initiative to leverage its expertise to help such industries.

ICICI Bank – Bridging the gap, one app at a time

In India, ICICI Bank is also contributing to the development of this sector with its innovative app called InstaBIZ, that allows all SMEs and business owners to manage their business banking needs through a single app.

The app makes it easier for small and mid-sized firms to meet all their working capital needs and get Term Loans to buy commercial assets and expand their business. It also allows them to apply for Flexi-Credit or unsecured loans, as per their requirement.

InstaBIZ app – Banking and beyond services, at your fingertips

Business owners can avail several cash management services, which not only allows them to conduct banking operations from anywhere and at any time, but also provides access to a comprehensive collection and payment services network. This is often crucial for SMEs as it helps them keep track of their cash in-flow and profits.

The app provides a holistic solution to all the banking requirements of a small business and secure a seamless banking experience for millions of MSMEs across India. The app facilitates day-to-day activities for several business owners, allowing them to focus on how to grow their business. It provides a much-needed support to the sector and helps it to achieve its full potential.

ICICI Bank has multiple financing products for MSMEs and offers loans to small and medium businesses at the most competitive rates. Check out our product suite for MSMEs here.

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