Banks are addressing the needs of SME and MSME by being resilient and agile
The current pandemic has posed a lot of challenges to MSME and SME businesses beyond the existing stumbling blocks. Lack of market demand, unforeseen government regulations, and survival as a whole is an issue. The sentiments are low, and the way forward looks dim.
The silver lining in the cloud is that banks can play a pivotal role in nudging these business segments in the right direction. In order to accelerate the growth path, banks can guide the customers by bringing short-term to long-term fixes within the available ecosystem and the experience and market understanding they possess. Digital education, facilitating credit ratings, leveraging analytical tools, better structured financing, are some examples which are crucial in this journey. Agility and awareness are key aspects to drive success.
It is clear that banks need to evolve along with their customers to cope up with the uncertainties and stay aligned to current market situations — all of these will go a long way.