Startup Circle: How Niyogin Fintech is Empowering MSMEs

Niyogin Fintech Limited is a technology-driven platform that provides loans, finance, investment, and allied activities to micro, small, and medium enterprises (MSMEs) in India which includes underserved MSMEs and rural individuals. The company caters to India’s underserved MSMEs and rural individuals and is engaged in diversified segments such as Rural Tech, Credit, and Wealth Tech. In MSMEs, Niyogin counts on its strong customer connection to drive business growth on a revenue-sharing model. T In rural areas, the Company has been empowering the retail stores to offer payments and financial transactions to customers in their vicinity.  

Sonal Patni, a business management graduate from the Indian Institute of Management – Calcutta, holds 22 years of experience as a technology professional where his core expertise lies in Fintech, Digital lending, and Startups. Sonal’s last stint was as a Chief Technology Officer with SMEcorner wherein he established a technical vision and drove aspects of building and strategizing for the tech platform. In his earlier roles in global technology companies like Avaya Inc., Cognizant, and Tech Mahindra, Sonal was entrusted with setting up and leading proven engineering teams in executing product and platform strategies.

As a Chief Technology Officer at Niyogin, Sonal will bring innovation, growth, and transformation to the technology and automation division of the company.

Speaking to CIOL, Sonal Patni, Chief Technology Officer, Niyogin has shared his views on how Niyogin Fintech is Empowering MSMEs and working towards becoming a one-stop solution for hassle-free financial services for MSMEs.

What inspired you to CTO Niyogin Fintech, and what is your vision for the company's future?

Niyogin Fintech is a uniquely positioned company that is well positioned to have a substantial impact on the lives of small businesses by giving them solutions that leverage the power of technology using its partnership-led model.

It is inspiring to see the substantial progress Niyogin Fintech has made in developing its delivery stack using Rural, Urban, and Wealth tech pillars which deploy advanced technologies to take these solutions to the MSMEs.

Technology continues to be one of the main delivery pillars at Niyogin Fintech. It has invested in creating a holistic platform delivering solutions for credit, financial inclusion, investments, and SAAS services that gives Niyogin Fintech affordable access to millions of its potential customers. We plan to use advanced technologies like Data Analytics and AI / ML to automate and further strengthen the tech stack to improve operational efficiency, reduced costs, enhance customer experience, increased compliance, and accelerated decision-making without losing sight of the importance of proper governance, data privacy, and security measures while implementing these technologies to maintain trust and mitigate risks associated with automation.

How does Niyogin Fintech use technology to provide financial inclusion, credit, investments, and SAAS services to MSMEs?

NiyoginFintech is leveraging technology in various ways to provide financial inclusion, credit, investments, and Software-as-a-Service (SaaS) solutions to Micro, Small, and Medium Enterprises (MSMEs). Here are some of the ways in which it's doing so:

Digital Payment Solution: Through its digital payment platform it enables local retailers and distributors to offer Digital financial services like the DMT portal for cash deposits, cash withdrawals, banking inquiry, bill payment, Aadhar-enabled payment via AePS portal, airtime recharge, and micro ATM (micro ATM portal). Using this platform,  one can access multiple banking services in a single place. This platform helps enhance financial inclusion also by providing a digital payment infrastructure accessible to a wider range of individuals and businesses.

Online Lending Platform: Niyogin Fintech leverages technology to simplify and expedite the loan application and approval process for MSMEs. It uses data analytics, machine learning, and alternative credit scoring models to assess the creditworthiness of MSMEs, thereby enabling faster loan disbursal and increasing access to credit for businesses with limited traditional credit history.

Supply Chain Financing: Niyogin Fintech utilizes technology to offer supply chain financing solutions to MSMEs. By leveraging data analytics and digital platforms, they provide access to working capital to MSMEs involved in supply chains. These solutions enable businesses to receive early payments for their invoices, improving cash flow and reducing the need for extensive collateral.

Digital Investment Platform: Niyogin Fintech offers a SaaS-enabled tech platform for financial consultants to serve MSMEs that allow MSMEs to invest surplus funds in diverse financial products such as mutual funds, and other investment instruments. This platform provides user-friendly interfaces, personalized investment advice, and automated portfolio management services, making it easier for MSMEs to participate in investment opportunities and potentially grow their wealth.

What are some of the biggest challenges that MSMEs face in India, and how is Niyogin Fintech addressing these challenges?

MSMEs in India face several challenges. Some of the key challenges faced by MSMEs in India include:

Limited Access to Formal Credit: Traditional financial institutions often hesitate to provide loans to MSMEs due to their lack of credit history or collateral. Niyogin fintech offers a holistic platform for providing financial inclusion, credit, investments, and SAAS services thru their unique partner-led phygital distribution network which allows them to leverage technology and alternative data sources to assess creditworthiness, enabling MSMEs to access formal credit easily.

Working Capital Management: MSMEs frequently face cash flow challenges, which hinder their operations and growth. Niyogin Fintech offers innovative solutions like invoice financing, and supply chain financing that assists MSMEs in optimizing working capital and maintaining steady cash flows.

Inadequate Financial Infrastructure: Many MSMEs in India lack access to basic financial infrastructure, such as bank accounts, payment gateways, and digital payment solutions. Niyogin Fintech provides a platform which enables local retailers and distributors to offer Digital financial services like the DMT portal for cash deposits, cash withdrawals, banking inquiry, bill payment, Aadhar-enabled payment via AePS portal, airtime recharge, and micro ATM (micro ATM portal) which allows MSMEs.to access multiple banking services on a single platform

How does Niyogin Fintech ensure the security and privacy of its customers' financial information?

Ensuring the security and privacy of customers' financial information is of paramount importance for Niyogin Fintech. Here are several measures that are implemented at Niyogin Fintech to ensure the security of its customer's financial information :

Secure Infrastructure: Niyogin Fintech has robust and secure IT infrastructure. This includes firewalls, intrusion detection systems, up-to-date security software, and strong encryption methods to keep the customer data safe and protect against external threats.

Data Minimization: Niyogin Fintech has adopted a data minimization approach, collecting only the necessary customer information required for offering their services. By reducing the amount of data solicited and stored, the potential risk and impact of a data breach are minimized.

Regular Security Audits and Penetration Testing: Regular security audits and vulnerability assessments are done periodically to identify and address any weaknesses. Conducting periodic security audits and penetration testing helps in identifying vulnerabilities and weaknesses in the systems. This proactive approach allows for the timely detection and remediation of any security flaws.

Regular Updates and Patching: Niyogin Fintech invests in keeping its systems and software up to date with the latest security patches and updates. This helps address any known vulnerabilities and reduces the risk of exploitation by malicious actors.

Employee Training: Niyogin Fintech provides regular training to its employees on data security best practices and policies so that its employees are aware of the importance of safeguarding customer information, how to identify and respond to security threats, and the proper handling of sensitive data.

How does Niyogin Fintech plan to stay at the forefront of innovation in the fintech industry?

The technology landscape is rapidly evolving, and there may have been advancements in technology in recent times. Here are a few innovations that Niyogin Fintech is working on:

Unified Digital Platform: Niyogin Fintech has been developing a digital platform that leverages technology and data analytics to offer multiple financial products and streamline loan origination, underwriting, and disbursement processes. This platform uses alternative data sources and employs machine learning algorithms to do borrower assessments to assess creditworthiness, interest rate determination, and loan repayment tracking making it easier for individuals and small businesses to access financial products quickly.

Artificial Intelligence (AI) and Machine Learning (ML): Niyogin Fintech leverages AI and ML technologies to enhance lending operations and process loan applications at minuscule costs. These technologies help automate processes, improve risk assessment models, and identify patterns that facilitate Niyogin Fintech to extend microloans to underserved segments of the population, such as small business owners and individuals with limited access to formal financial services. These loans are typically of smaller amounts and are offered quickly and at reasonable interest rates, enabling financial inclusion and economic empowerment.

New Business Models For Collaboration: Niyogin Fintech works with multiple partners on both supply and demand sides. Using integration technology, it’s able to integrate its platform with its partners seamlessly offering new business models to its customers to make multiple financial services and products available to them instantly.