Conclusion

The key issue for MSME financing is risk assessment, and more specifically, how to better assess the risk potential of companies that lack a long credit history. Technological tools and data-driven solutions enable firms to approach this process from a new angle. They make it possible to harness a bigger pool of data to provide greater visibility into firms’ operations and creditworthiness. Rather than a backward-looking approach to risk assessment, as in the past, data can now allow financiers to make risk assessments a real-time process.