Digital Lending To Small Business Set To Surge, Says BCG-Omidyar Report

If payments were the chosen flavour of the fintech universe a few years ago, then digital lending, particularly to small business, is the newest opportunity attracting young entrepreneurs. As the number of digital lending platforms rise and the availability of data around small businesses improves, digital lending to the country’s micro small and medium enterprises could surge, said a report co-authored by consulting firm BCG and philanthropic investor Omidyar Network. The gap in availability of formal finance has plagued India’s small businesses for decades. Despite attempts to increase the flow of bank credit to this segment, a large part of funding is still coming from informal source.