Technology for MSMEs: The bank has launched a news app Yes Scale Bizconnect to allow members of MSME associations to list their products and services with an option to buy or sell among other members of different associations.
To further engage with young and small businesses in India, private sector lender Yes Bank has extended its support programme for MSMEs — Yes Scale to MSME associations. The bank has launched a news app Yes Scale Bizconnect to allow members of MSME associations to list their products and services with an option to buy or sell among other members of different associations. The app will allow the associations to also manage their member base along with sharing respective industry-specific updates and information.
The bank has specially designed an online marketplace for MSMEs to do business among other MSMEs from within the app. From the banking solution perspective, the app links associations’ banking transactions including fee collections from members, sponsorships, event, symposium bookings etc., through the app. The knowledge sharing or the content part of the app will provide reports, articles and interviews based on the interest of every MSME member.
MSME minister Nitin Gadkari has been stressing on the critical role MSMEs play in enabling India as the $5-trillion economy in five years. From current around 29 per cent contribution to the GDP, Gadkari has targeted the share to increase to 50 per cent and 5 crore more jobs in five years.
Yes Bank’s new app for MSMEs would also allow businesses to pay later, payments, collections, reconciliation etc. The new app will help the bank “digitize operations for its key MSME partners through curated banking and technology solutions,” said Rajan Pental, Senior Group President and Head – Branch and Retail Banking in a statement. Yes Bank had launched Yes Scale as a startup accelerator last year focusing on smart city, cleantech, agritech, lifesciences tech, and edtech but now functions as a solution platform for MSMEs by developing solutions along with startups.
Last year, the bank had set-up a YES GST programme for small businesses to know the impact of the GST system on their businesses and how to migrate to it. In July, the bank announced offering secured working capital loan between Rs 1-3 crore in the form of overdraft, letter of credit, and financial bank guarantees to MSMEs through its surrogate lending model Smart Edge for MSMEs. Small businesses don’t have to share their financial statements even as credit appraisal is done according to the data-points from GST returns and operative bank accounts of MSMEs.