CII Financing 3.0 Summit | Sanjiv Bajaj: Digital Transformation Can Revolutionize SME Lending

At the CII Financing 3.0 Summit in Mumbai, Sanjiv Bajaj, Chairman & MD of Bajaj Finserv, addressed the ongoing challenges in SME financing. He highlighted that despite advancements, the penetration of credit to SMEs remains limited. Bajaj pointed out that the lack of competition among lenders is a significant factor driving this issue. He emphasized that only when multiple banks and NBFCs actively compete to lend to SMEs will there be sufficient credit available to this sector. Bajaj also noted that the digital transformation in financial services, including initiatives like the digital stack and the account aggregator framework, is set to revolutionize SME lending. He drew parallels with the retail sector's growth, driven by competition and digitalization, and stressed the need for a similar approach to boost credit access for SMEs.