Should banks and ERPs tie up with fintech to improve services to their SME business customers?

4 min readNov 10, 2021

Out of more than 2000 fintechs in India, 67% was established in the last 5 years. As the adoption rate of fintechs in India is the highest among all the global players, it is expected that the Fintech market in India will grow to $84 Bn by 2025. (According to INVEST INDIA https://www.investindia.gov.in/sector/bfsi-fintech-financial-services).

SME — the principle driving force of Indian economy

The small and medium enterprises commonly known as SME are of paramount importance in India as the SME sector contribute to 1/3 of India’s GDP.

Major challenges faced by SME businesses

· Insufficient funds

· Minimum access to capital due to absence of collateral to access credit

· Lack of awareness of technological and digital knowledge

· Minimum skilled resources to handle tedious accounting processes like ledger handling, maintaining balance sheet, managing reconciliations, managing invoices and so on.

· Lack of cash flow visibility

· Delay in payment and collection

· Difficult to track receivables and payables manually

· Inefficient business decisions

· Manual errors

· Manual chasing for invoices

Fintech — a fast growing superpower

The financial technology companies (fintech) automate financial system and offer endless array of services with the aid of innovative technology.

Why is there a need for banks/NBFCs to partner with fintech?

Due to legacy system banks are not able to serve their SME customers to the fullest. They are now trying to find the ways to collaborate with fintech companies especially because the synergy

Can reduce operational cost

Can serve a wider customer base

Can understand customer demands and serve them with wider range of personalized products and services

Improve customer loyalty base through better customer relationship

Enhances brand value

Hylobiz is an SME focussed fintech and offers connected ERP and connected banking services, to simplify business processes and improve credit profile of SME businesses. Hylobiz is presently in partnership with top financial institutions like Bajaj Finserv, Neogrowth credit private limited , Kotak Mahindra Bank and YES Bank.

We offer financial institutions to collaborate. Banks/NBFCs click here to partner with us.

Why is ERP/ accounting platform need to associate with Fintech?

The integration can benefit in better tracking of payables and receivables and in maintaining financial details digitally and automatically.

Hylobiz is integrated with top ERP partners like Tally, Quickbooks, Zoho Books, CORALerp to name a few.

SME business can easily integrate their existing ERPs and accounts with Hylobiz platform.

Hylobiz- the secured ISO certified fintech start up and a neobank serving SMEs with the support of financial and ERP partners

Hylobiz is ISO 27001:2013 certified and assures security and privacy to its business customers through encrypted data, and secured hybrid structure.

The integration of ERPs and accounts with Hylobiz can help SME customers

ü to manage data with the support of cloud,

ü create/ upload and send invoices and attach a secured payment link and send out to the right customer for payment collection over SMS, WhatsApp, Email and Hylobiz chat option. A static payment link can help collect a fixed amount repeatedly.

ü manage and automate invoices and collections, can get paid through multiple modes like cash/cheque/Net Banking/ RTGS/ NEFT/ UPI.

ü track and handle receivables and payables better,

ü manage ledger digitally and share with their customers,

ü get information and cyber security

ü access financial services

ü automate vendor payments, pay out within due date in single/ bulk mode

ü automate the management of invoices and inventories

ü get access to quick settlement and automated reconciliations on real time

ü Hylobiz chat option on our mobile app ensures better relationship with clients and helps to get paid and pay out without any delay

ü get access to invoice discounting as the status of outstanding invoices/receivables (acting as collateral for loans) can be tracked though automated reconciliation and reports, realtime dashboard and business health score

ü the financial market place feature on the Hylobiz mobile app/ web portal gives access to collateral free business loans, pre-approved SME credit cards (with extended interest free credit period), insurances, e KYC and online bank account opening, savings, investments and insurances with our banking partners.

In our partnership with Kotak Mahindra Bank, SME businesses can access easy account opening. SME businesses through Hylobiz can get access to faster and cheaper working capital loans with Bajaj Finserv and Neogrowth credit private limited.

Businesses can Click here to avail loans from Bajaj Finserv.

Hylobiz connects the business tools and processes with banking via open banking APIs and is a Neobanking platform serving SMEs.

We are live in UAE and India and are in a process to extend to other corridors.

Reach us for further details at: support@hylo.biz.

Read the blog originally published on : https://hylo.biz/should-banks-and-erps-tie-up-with-fintech-to-improve-services-to-their-sme-business-customers/