Axis Bank’s SME offerings: Private sector lender Axis Bank on Thursday announced a new banking offering ‘NEO for Business’ for MSMEs to cater to their real, current, and emerging transaction banking requirements. The services include digital self on-boarding, bulk payments, GST-compliant invoicing, payment gateway integration, 360° customer view, end-to-end transaction tracking, auto reconciliation, recurring collections, cash flow reports and more.
Transaction banking refers to a set of banking services and products that facilitate the daily financial transactions and cash flow management of businesses, corporations, and financial institutions. It is primarily focused on the operational aspects of banking and plays a crucial role in supporting the day-to-day financial activities of businesses.
“Rise in digital adoption presents prospects for further growth in the sector and we see this as a huge opportunity,” said Axis Bank in a statement. Existing Axis Bank Current Account customers can use NEO for Business on mobile through the mobile app or through online registration.
The service is currently available for sole proprietorship entities and individuals and will soon be extended to companies, partnerships, and LLPs.
Neeraj Gambhir – Group Executive & Head – Treasury, Markets and Wholesale Banking Products, Axis Bank, said, “The MSME Business Banking landscape is evolving rapidly, and there is a need for a comprehensive solution for all their Banking and Beyond Banking requirements. Our approach was to build a proposition that offers and solves for their needs across a range of products and services on a single platform.”
Last month, Axis Bank had announced offering up to Rs 10 lakh unsecured MSME loans and Kisan Credit Card (KCC) for loans up to Rs 1.6 lakh per borrower under the pilot project of the Reserve Bank of India’s (RBI) Public Tech Platform for Frictionless Credit which commenced on August 17.
Also read: Aditya Birla Finance joins OCEN for loans to MSMEs on GeM Sahay
The bank will leverage the tech platform by RBI’s Innovation Hub to access secure and consent-based customer data for PAN validation.
Moreover, in January this year, the bank had partnered with the SME neobank OPEN to provide digital current accounts for SMEs, freelancers, homepreneurs, influencers and more coupled with OPEN’s end-to-end financial automation tools for business management including payments, accounting, payroll, compliance, expense management and several other services.