Harnessing Fintech for Poverty Alleviation in Micro, Small, and Medium Enterprises (MSMEs)

Abstract

“Fintech” refers to the fusion of finance and technology to enhance corporate functions and facilitate the delivery of financial services. This study aims to elucidate the role of financial technology (Fintech) in the advancement of micro, small, and medium-sized enterprises (MSMEs) in India, emphasizing its impact on poverty alleviation. Employing a descriptive research approach with a qualitative framework, the study draws upon a review of literature encompassing published research findings, government websites, and expert insights. The findings suggest that the integration of Fintech within the business landscape can effectively address common challenges faced by MSMEs, contributing to poverty reduction. Poverty, defined as the inability to meet basic needs, requires a clear understanding of these necessities before identifying individuals in need. The study concludes that MSMEs, by customizing Fintech platforms to their unique requirements, experience accelerated growth and prosperity. The implications for MSME players include improved efficiency in sourcing finance, streamlined transaction processing, expanded market reach, and expedited financial reporting.

Keywords: Fintech, MSMEs, Poverty Alleviation, Personal Finance, Technology

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