Aditya Birla Finance Joins Hands With Credable To Ease MSME Lending
Aditya Birla Finance (ABFL), a key player in the financial services sector, has unveiled a strategic partnership with CredAble, a fintech company specialising in supply chain finance to ease Micro, Small, and Medium Enterprises (MSME) lending in India.
This strategic partnership is aimed to democratise the traditional approach to MSME financing by leveraging cutting-edge technology and advanced analytics.
ABFL has observed an increase in lead flow with CredAble's advanced solution, with nearly 80,000 leads sourced in the past six months. Additionally, it has enabled the creation of a significant database for large non-banking financial companies (NBFCs) such as ABFL, enhancing analytics for cross-selling of merchant financing, top-up loans and equipment financing. The implementation has also contributed to increase in net interest margins (NIMs).
CredAble has designed a multi-faceted digital underwriting solution to combine dynamic case management, intelligent workflow and robust credit risk and decisioning support systems. Aditya Birla Finance, using support of CredAble has brought to the SME ecosystem, Udyog Plus, an end-to-end solution that addresses critical pain points in the B2B (Business to business) lending process and plays a crucial role in supporting the diverse needs of MSMEs.
Rakesh Singh, Managing Director (MD) and chief executive officer (CEO) of Aditya Birla Finance said, "At Aditya Birla Finance, we are on a journey to empower MSMEs and entrepreneurs. The collaboration with CredAble marks a pivotal moment for ABFL. CredAble's digital underwriting solution has not only streamlined our lending processes but also significantly improved our efficiency in serving businesses, setting a new benchmark in unsecured business loans for MSMEs."
This strategic partnership aims to empower MSMEs with accessible and tailored financing solutions, driving sustainable growth for the MSME sector. Moreover, the association is critical to develop innovation and co-creation in the financial sector.
Nirav Choksi, co-founder and CEO of CredAble said, "Accuracy and precision are crucial in the digital lending landscape. State-of-the-art underwriting today involves a fully digital workflow and extensive use of a wide range of third-party data. Entities lacking systems with alternative credit scoring mechanisms will be at a disadvantage in pricing risk effectively and supporting MSMEs competitively.”
He further said that CredAble is delighted to back ABFL with its underwriting solution that automates the end-to-end lending experience that was previously highly manual and as a result, ABFL’s digital lending solutions are enabling low-interest credit offerings and faster credit decisions, empowering MSMEs with unprecedented access to unsecured business loans finally bringing ‘credit invisible’ customers under the formal financial fold.
