50% of MSME credit gap in low, middle-income nations can be closed by digital public infra- Report
时间:2024-06-26 07:57:58 阅读(143)
Global wealth and asset management company Lighthouse Canton in its report on Wednesday said that digital public infrastructure (DPI) to develop digital products and services in a country has the potential to close nearly half of the credit gap faced by MSMEs in low and middle-income nations. The report, showcasing the outcomes and prospects following the 2023 G20 summit under India’s presidency, noted that the use of DPI can also ease credit access for an additional 16-19 million MSMEs in such countries.
“Effective deployment of DPI can address existing digital divides and enable inclusive and sustainable development. As a continually evolving concept and a suite of shared digital systems, DPI can be nurtured and utilized by both the public and private sectors,” said Sumegh Bhatia, Managing Director and CEO, Lighthouse Canton India.
The paper made recommendations broadly around how digital payment systems, data exchange DPIs, alternative data sources, use of data exchange and digital payments together, etc., can ease credit access for MSMEs, FE Aspire reported.
DPI refers to interoperable, open, and inclusive systems supported by technology to provide essential public and private services. Some examples of DPIs are digital ID systems such as India’s Aadhaar, Singapore’s Singpass, and the United Arab Emirates’ UAE-Pass; digital payment systems, especially fast payment systems, such as Brazil’s Pix, India’s UPI, etc.; and (iii) data-exchange platforms such as India’s Digilocker and Account Aggregator, Singapore’s MyInfo, Australia’s Customer Data Right, etc.
Around 41 per cent of formal MSMEs have unmetfinancingneeds in emerging markets. The finance gap for them is estimated at $5 trillion while women-owned businesses comprise 23 per cent of MSMEs and account for 32 per cent of theMSMEfinance gap.
Meanwhile, the report by Lighthouse Canton maintained that investing strategically in sectors like open credit, digital retail payments including UPI, and broadening Government-to-Person (G2P) systems, could enhance the GDPs of low and middle-income countries by 1-2 per cent. Additionally, it emphasized that digital IDs, such as AADHAR, have the potential to unlock economic value equivalent to 3-13 per cent of the GDP in these countries, averaging a 6 per cent improvement.
Subscribe to Financial Express SME (FE Aspire) newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises
上一篇:Stock markets settle with gains; logs 4th day of rally
下一篇:World Bank retains India growth forecasts for FY24 and FY25
猜你喜欢
- Budget 2024- Extend all MSME benefits to retail traders, urges retailers’ body RAI
- Rating- Buy, Zomato- Improvement in profitability
- Punit Goenka moves SAT against SEBI’s confirmatory order
- Stocks to watch- Axis Bank, Tech Mahindra, Hero MotoCorp, Sona Comstar
- Bulls may pull Nifty towards 17800, crucial support at 17300; 5 things to know before market opening bell
- Radiant Cash, Sah Polymers, Supriya Lifescience among 42 NSE stocks to hit 52-week low, 43 rises to 52-week high
- Bond yields surge, time to lock high returns; here’s how to choose debt securities, duration, allocation
- Stocks bleed for sixth day in a row; Rs 3
- Rabi area down 2