Tamilnad Mercantile Bank partners with Jocata

TMB’s plan is to leverage Jocata’s low-code Digital Lending Platform (DLP) to improve its digital transformation strategy, offering MSMEs end-to-end digital, personalised, and experience-led value proposition. As the MSME segment is expanding, the bank’s objective is to digitise MSME Financing Program, providing secured and unsecured products covering funded and non-funded facilities.

According to the bank’s officials, TMB has boarded on a digital transformation agenda together with business process re-engineering, one of their milestones being to bring digital credit products to MSME customers through technology. By levering the potential to improve digital lending with Jocata’s platform, the bank aims to improve its presence in India by providing a seamless experience for MSMEs. Moreover, by implementing Jocata’s DLP, the fintech platform’s objective is to improve the current process and reduce the time-to-credit for businesses, while enabling operational ease for the bank. 

The Micro, Small, and Medium Enterprise (MSME) sector represents a fundamental part of India’s economy, as it accounts for approximately 30% of the country’s GDP. Moreover, this sector generates employment, reducing regional imbalance, while also improving exports and the credit market. The Indian government plans to increase the output of MSMEs to 50%, as well as the export contribution to 75% by 2024.

The Ministry of MSMEs’ report states that businesses have been widening their domain of activity across sectors of the economy, providing a variety of products and services to deliver to domestic and global markets. The Indian ministry has been running several schemes targeted to provide credit and financial assistance, skill development training, infrastructure development, marketing assistance, and technological and quality upgradation. Through financial assistance, new self-employment ventures, projects, or micro-enterprises will be created, therefore generating employment opportunities in rural and urban areas, as well as providing continuous and sustainable engagement for all segments of traditional and prospective artisans and unemployed youth in the country.

Moreover, the country focuses on providing activities to women entrepreneurs, as well as disabled individuals, enabling extra benefits, concessions, and assistance. Countrywide, there are approximately 24% of proprietary MSMEs owned by women.

The development of the MSME sector can help in meeting SDG goals, including ending poverty, ensuring zero hunger, promoting health, gender equality, and inclusive work. 

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