Breaking Financing Barriers in Infrastructure

Fintechs have emerged as an alternative finance mechanism harnessing digital technologies for financing while breaking down several existing barriers. They have transcended the limits of traditional banking, providing alternative means of funding for underserved sectors.

Let us see how fintechs have broken financing barriers.

1. Unbundling and restructuring of financial services:

Traditional banking had always revolved around taking in deposits and engaging in both processing payments and making loans. And hence, there is always a risk of crisis as a consequence of things like ‘fractional reserve’ and ‘maturity transformation’.

On the contrary, Non-Banking Financial Companies (NBFCs) like Oxyzo focus solely on providing smart financing services to businesses that help them grow and thrive. As a result, their custom solutions like purchase financing, invoice discounting and other forms of business financing have helped many Medium and Small-Scale Enterprises to take steps forward in economic development. Oxyzo is currently serving 3000+ SMEs across India, disbursing 4000+ crores per annum, and has 1500+ crores as AUM

2. Financial inclusion:

Most SMEs and startups remain underserved at the hands of traditional forms of financing. Fintechs have reached out to this underserved sector. They have helped fund them with a variety of financial products including unsecured loans.

Moreover, the turnaround time for business financing is very short compared to other financial institutions. This has been possible due to smart tools they have been using to shorten the loan processing, approval and fund disbursement time.

As a result, beneficiaries have been able to access timely working capital and receive funds for other business purposes. This helped them become an active and integral part of the country’s economy. Being financially inclusive with the help of fintech, MSMEs have been contributing to nearly 30% of India’s GDP and are set to share more.

3. Utilizing technical expertise in financial services:

Banks have not been able to reach a large section of the economic potential sector. Fintechs have taken advantage of technical instruments like smartphones, internet connections, and data analysis and have combined them to reach the masses. As a result, they opened up the possibility of providing basic financial services quickly with minimum documentation. And businesses needed such hassle-free and quick services to make the most during times such as that of making seasonal profits, etc.

Fintechs are no less than virtual banks that use the internet, smartphones, artificial intelligence, cloud computing and data analytics to make financial services easily accessible to even technology-averse users.

The user does not need to personally visit. An applicant can apply online, submit documents, get an e-KYC, track the processing and receive funds digitally without being involved in a cumbersome process.

4. Making financial services personalised:

Fintechs have revolutionised the financing sector by adding ounces of personalization and customization. Fintechs have learnt to know their customers and their financing needs better. Knowing the loopholes, they have been able to facilitate strategic intervention to derive smart solutions for users of financial products.

Combining new tools and analytics methodology, they are in a position to cater their customers with customised solutions tailored to their specific needs.

5. Value addition:

Fintechs have been realising the scope of economies that traditional banking has failed to recognize and implement. They have been integrating financial services with other activities that can generate revenue. They have been trying to and also have been successful to a great extent in harnessing this scope. And they have done this by integrating their financial products with different means of revenue generation such as e-commerce, sharing-economy businesses and big data analytics to deliver new added value.


Fintechs have managed to bundle financial services with sophisticated information processing systems. This has given them an edge over traditional banking systems to continuously allocate a finite financing source which is both reliable and sustainable. There is no doubt in saying that the role of a Fintech is no less than a driving force in building a sustainable economic society.

They have enhanced the possibilities of financial services and access to business financing for the underserved sector. Hence, financial inclusion helped them contribute to economic development.

It is apt to say that Fintechs have changed the landscape of the financial sector by increasing access to financial services in profound ways.

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