RazorpayX: India-based SMEs lose money due to legacy systems

The infobrief delves into understanding challenges faced in managing financial operations, slow adoption of digital solutions, and its impact on MSMEs. The IDC Infobrief attempts to answer some pertinent questions around digital adoption by SMEs and what is stopping them from modernising their finance function. Furthermore, the study highlights the urgent need for SMEs to digitally transform their finance function, as the offerings of traditional banking organisations do not align with their evolving needs. Reiterating why business finance is the core of any enterprise, the study has focused on 6 key functions that businesses typically spend most of their time on - this includes Banking, Payroll, Vendor Management, Business Reporting, Expense Management, and Access to Working Capital.

The findings of the IDC Infobrief are based on the responses garnered from quantitative surveys of 20–25 minutes in length and in-depth research. 

Key insights from the IDC Infobrief highlighting existing business challenges: 

Having acknowledged the above-mentioned challenges, SMEs also realise they need a simple, seamless business banking solution that will allow them to focus on core business activities instead of being caught in complicated processes and repetitive tasks. Here are some key requirements from SMEs:

• 66% SMEs insist on need for easier access and faster means for loan approvals and verifications;
• 75% SMEs wish for reduction in time spent on data entry when it comes to payroll; 
• 60% SMEs want a unified view of financial transactions to check and improve visibility of overall business health and identify hiccups early on;
• 55% SMEs prefer automated approval processes for better time management.