Abstract

The advancement in technology in the finance sector has given birth to FinTech. South Asia will be witnessing the highest FinTech growth rate in the next five years. Indian MSMEs have been seen to be riding this tide, and FinTechs are well aware of that. This study aims to examine the role of Fintech-based microfinancing in the growth and sustainability of MSMEs. We have followed qualitative methodology to understand the impact of FinTech services on the MSMEs' overall development. Insights from interviews revealed many problems, especially credit-related, faced by MSMEs. The participants accepted that FinTechs have helped them overcome the problems by offering quick and customized short-term loans. The study establishes that the support from FinTech has made the MSMEs more financially stable, resulting in their growth. This study will be the first to investigate this relationship between Fintech and MSMEs. The evidence found in our work points towards the overarching effect of such ecosystems on the nation's economy.

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