Proper data integration required to boost MSME lending, say bankers

Bankers highlighted the need for consent-based APIs and structured data to improve MSME lending, addressing working capital, technology, and credit guarantee challenges

To enhance lending to micro, small and medium enterprises (MSMEs), proper data integration is required, bankers said, stressing the need for a consent-based application programming interface (API) where income tax data can be accessed and directly used in credit models.

 

“Right now, getting information is done manually by different banks and NBFCs (non-banking financial companies). Gradually, we have to integrate API information and other transactional data outside the banking account space into this seamless journey. Once that happens, we will be better placed to move to the next phase of the business,” said Ashwini Tewari, managing director, State Bank of