SMBs Demand Faster Loan Approval: RazorpayX Study

New Delhi, January 11 (KNN) According to a study by RazorpayX, one in two small businesses agree that limited resources and lack of knowledge are the two biggest challenges to their digital transformation aspirations.

According to their findings, more than 50% of SMEs are asking for easier and faster access for loan approvals and verifications.

They also want to reduce the time spent on payroll data entry and want a unified view of financial transactions to verify and improve visibility into the overall health of the business and identify issues early on.

The study is titled “SME Banking is Broken: Will India’s Promising Neobanks Fix It?” “.

Its objective is to understand the various problems encountered in the management of financial operations, the slow adoption of digital solutions and its impact on MSMEs.

To help the industry, it attempts to answer an important question regarding digital adoption by SMEs and what is holding them back from modernizing their finance function.

It also highlights the urgency for SMEs to transform their financial function in the digital space.

One of its findings is that the average annual loss due to reliance on legacy systems is INR 67 lakh (per SME, per year), which is equivalent to 1,689 hours of working hours per SME, per year.

45% of SMBs fear manual errors due to reliance on traditional processes.

More than 56% of SMBs said they waste time deploying resources for repetitive tasks.

When asked to spend a lot of time (an average of 1446 hours) on financial transactions and repetitive tasks, 44% of SMEs complained that they made reference to it.

However, they realized they needed a seamless commercial banking solution that would allow them to focus on their core business.