Fintech and marginal farmers!
Many Fintech companies are working towards providing financial inclusivity to the marginal farmers by making digital innovation in bridging the geographical gaps, access to financial products etc., In a country like India where farmers are spread across the nation accounting for more than 65% of the population, access to credit is a serious problem.
The traditional credit providers to these marginal problems are faced with the below barriers in providing a justifiable financial product,
The Cost of operation runs high due to the cost involved in reaching the thinly spread marginal farmers
The lack of data to analyze the repayment capability of the farmers
The Risk involved is due to the unpredictability in the nature of income of the farmers.
So, high operating cost, lack of data and risk management seems to be the major challenges for the financial providers involved in this domain who uses their traditional means of credit.
The Fintech companies address these exact problems through digital means. They use technology such as customer-centric mobile applications, scoring models, Field officer planning apps, online repayment etc., to overcome these barriers.
With these fintech companies, the financial service providers have better data, requires less manpower and can effectively use their field officers through online plans. They can develop customized products to cater for these marginal farmers due to this technology which enables them to access proper data and increase reach to the farmers.
This fintech helps in digitalizing the credit market greatly benefiting both the credit providers and marginal farmers.
You can read more on this through the below links,
With support from fintech, farmers can grow an inclusive global recovery
How fintech is helping small-scale farmers become profitable producers
Agtechs and financial institutions: Financing farmers in India
If you’re working with farmers groups such as producer organizations, community institutions and want to launch lending-as-a-services, reach out to us and we’ll help us to make lending business completely digital and efficiently.
This Week’s News
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