Report Launch – Open Finance: From Inclusion to Empowerment of MSMEs

Sahamati, in collaboration with McKinsey & Company, has unveiled an insightful report titled Open Finance: From Inclusion to Empowerment of MSMEs. This comprehensive paper delves into the transformative potential of the Account Aggregator (AA) ecosystem in overcoming the long-standing credit challenges faced by India’s Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the country’s economy.

The report highlights over 15 use cases where the AA framework can significantly enhance the efficiency of financial service delivery, drive innovation in financial products, and reduce the credit gap for MSMEs. By enabling tailored financial solutions across lending, business finance management, and beyond, the AA ecosystem paves the way for unlocking growth opportunities, facilitating the formalisation of businesses, and fostering economic resilience.

While the AA ecosystem has made notable strides, especially in facilitating small business loans, there are still significant hurdles, particularly with data availability for underwriting, especially for informal, unregistered MSMEs. Despite these challenges, the report emphasises the AA framework’s transformative potential in reducing credit barriers and enabling financial inclusion for underserved enterprises.

During the launch session, Ms Shalini Gupta, Head of Strategy and Policy at Sahamati, presented an overview of the findings. The session provided valuable insights into the growing role of open finance in empowering MSMEs and advancing financial inclusion. Mr Nandan Nilekani officially released the report along with the McKinsey & Company team. 

Access the full report here: Open Finance: From Inclusion to Empowerment of MSMEs
Complete Session Recording: Watch Here