How AI Is Transforming Credit Decisions for Small Businesses

DigiAlly CEO and MD on Leveraging AI for Securing Loan Access
Shrikant Patil, CEO and MD, DigiAlly

Fintechs play a crucial role in providing digital financial solutions for MSMEs, especially in managing loan access. By leveraging new technologies, fintechs enable MSMEs to secure cash-flow-based financing and generate financial reports to demonstrate their repayment capacity and default risk to financial institutions. However, MSMEs often face challenges such as limited credit information, lack of guarantees and the risk of non-performing assets.

To address these challenges, Singapore-based fintech DigiAlly recognized the need to innovate beyond traditional methods. It has developed an AI model for SMEs that goes beyond conventional approaches to accessing finance. DigiAlly's CEO and MD Shrikant Patil said MSMEs can enhance their access to credit and equity by adopting new technologies related to agility and cash flow management.

"We offer this service to banks and financial institutions to help them make better decisions. We assist them across the life cycle, including lead management, credit decisions, portfolio management and collections. This is the overall journey, covering all aspects with financial institutions as an embedded finance solution," Patil said.

DigiAlly's AI model addresses credit risk and operational and market risks, ensuring the long-term viability of the companies it supports. AI's adaptability allows it to train and retrain the model, leveraging the vast amount of SME data to help banks make better decisions and bridge the trillion-dollar funding gap in emerging and global markets.

In this video interview with Information Security Media Group, Patil also discussed:

  • The potential of AI in credit risk management and beyond;
  • Use cases of predictive AI and generative AI in credit decisions;
  • Embedded finance solution for banks and financial institutions.

Patil is a digital strategist, with expertise in assisting a wide variety of companies in strategy development, business model innovation and cost optimization.

About the Author

Sandhya Michu

Sandhya Michu

Senior Assistant Editor - Editorial, ISMG

Michu is an experienced professional with over 10 years of expertise in the ICT industry. She has worked with leading media groups such as Cybermedia, 9.9 media and The Indian Express. Michu's focus areas include enterprise technology and government tech initiatives.

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