MSME growth depends not just on access to capital, but on speed, simplicity, and trust. From fully digital loan journeys and data-led credit assessment to AI-driven risk monitoring and API-powered ecosystems, banks are playing a critical role in building a more inclusive and resilient MSME landscape. In this exclusive interaction, Atul Garg, Chief Technology Officer (IT Head), Small Industries Development Bank of India (SIDBI), shares his perspective on leveraging digital platforms, AI, data, and secure cloud infrastructure to expand MSME credit access, strengthen trust, and enable sustainable, future-ready growth – in an exclusive interaction with Vishwas Sinha of Elets News Network (ENN). Edited excerpts.
Your Bank works closely with a wide and diverse MSME ecosystem. How has technology helped simplify access to finance and improve engagement with small businesses across India?
Technology has enabled us to move from paper-heavy, branch-centric processes to fully digital journeys. MSMEs can now apply for loans online, complete e-KYC instantly, ensure compliance to the tee, and receive credit decisions within hours. By leveraging GST, UPI, and digital payment data, we’ve expanded access to first-time borrowers who previously lacked formal credit histories. Mobile-first platforms and vernacular interfaces ensure that even MSMEs in tier-2 and tier-3 cities can engage with us seamlessly.
Digital platforms are changing how MSMEs interact with financial institutions. What focus areas have been most important in making your bank’s digital initiatives more inclusive and user-friendly?
Our focus has been on accessibility, interoperability, and personalisation. We’ve built multilingual, mobile-friendly interfaces to ensure inclusivity. Open APIs allow us to integrate with fintechs, banks, and government portals, creating a unified MSME journey. We also provide tailored dashboards and embedded advisory modules, so MSMEs receive not just finance, but also guidance on compliance and digital literacy.
As digital adoption grows, so do data and security responsibilities. How do you approach innovation while ensuring trust, resilience, and security remain intact?
Trust is the foundation of digital finance. We’ve adopted zero-trust architecture, strong encryption, and compliance with RBI and national data protection frameworks. Our cloud-native infrastructure ensures resilience with disaster recovery and redundancy. Innovation is pursued responsibly, with MSME trust at the centre of every rollout.
Emerging technologies like AI, data analytics, and APIs are gaining momentum in BFSI. Where do you see the most meaningful opportunities for these technologies in strengthening MSME finance?
AI is transforming credit risk assessment by using behavioural and transactional data. Predictive analytics help us identify stressed MSMEs early and intervene with support. APIs are crucial for ecosystem building, allowing fintechs, marketplaces, and supply chains to plug into the Bank’s platform. AI-driven fraud detection further strengthens the integrity of digital lending.
MSMEs vary widely in scale and digital readiness. How do you design technology solutions that work equally well for both digitally advanced and first-time digital users?
We follow a dual-track design approach. Digitally savvy MSMEs get advanced portal platforms and mobile channels/apps, dashboards, while first-time users experience simplified, guided journeys. Assisted channels—like local partners—complement self-service options. MSMEs can start with basic services and gradually adopt advanced features as their digital maturity grows.
Looking ahead, how do you see technology shaping your Bank’s role in building a more resilient and future-ready MSME ecosystem over the next few years?
Technology will enable MSMEs to withstand shocks by providing real-time access to finance, markets, and advisory services. We’re embedding green financing tools to help MSMEs adopt sustainable practices. Data-driven insights will guide policymakers in designing sector-specific interventions. Ultimately, digital platforms will connect Indian MSMEs to global supply chains, making them more competitive and future-ready.
Also Read: Vision 2026: Engineering Trust in a Data-Driven BFSI Era
Closing Statement
“As IT-Head, I espouse our Bank’s digital transformation is not just about faster loans—it’s about building a future-ready MSME ecosystem. By combining inclusivity, innovation, and trust, we are ensuring that every small business in India—whether digitally advanced or just starting out – has the tools, finance, and confidence to thrive in the digital economy.”
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