Easy Pay aims to bring banking services and easy access to credit to the underserved MSME segment

Easy Pay is the first fast-growing integrated finance and neo-banking platform for MSMEs (Micro, Small and Medium Enterprises) in India. It is among the pioneering fintechs in the country, launched with the vision of financial inclusion for the unorganized business sector. Here is our conversation with Mr. Vaibhav Joshi, Co-Founder and CEO, EasyPay.

Tell us about Easy Pay. How it all began ?
Easy Pay is one of the first fast growing integrated neobanks for MSMEs in India. A study of the rapidly changing domestic MSME market revealed a huge opportunity to provide easy and secure financing to this sector due to the apathy of mainstream financial institutions. Since there were no MSME-focused fintech players at the time, we launched Easy Pay (in 2014) with a strong belief of “Organizing The Unorganized”. It is an offbeat platform that supports and scales the 2nd largest employer in India and exclusively extends digital convenience for their needs.

The pandemic has further helped the fintech sector, as most small and medium-sized businesses quickly adopted an online presence and needed a new era fintech to help them with digital financial services. As more and more MSMEs, especially from non-metropolitan markets, emerged on the online platform, there was a relevant need for a focused and scalable financial service, especially for loans, to meet their personal and professional demands. We already have experience in the retail industry and pan-India presence through over 18,000 PINs. The aim is to provide all banking services by creating an integrated financial ecosystem for MSMEs. We help MSMEs unlock their full potential, drawing on domain expertise, business acumen and experience in technology, banking, consulting, finance and strategy.

What is the new commercial orientation of Easy Pay?
The domestic MSME sector is the second largest employer and contributes around 30% of India’s GDP. However, easy and quick access to credit remains a big challenge for this sector, especially for actors who have little or no credit data. Recognizing these challenges faced by MSMEs and drawing on the experience of serving the unorganized retail sector, Easy Pay has created an integrated finance Neobank, offering a complete banking experience, delivered in a truly within the regulatory framework, all at your fingertips. . We have developed our proprietary tools and engine framework to ensure safer underwriting, instant verification and fast loan disbursements. This, coupled with AI-powered self-help and an immersive customer experience, makes us a delight for users. As an integrated finance Neobank for MSMEs, Easy Pay aims to be a one-stop-shop for all their financial, personal or professional needs. Our product offering includes Payments, Banking, Lending, Wealth Building, and Investments, as well as value-added services such as Tax, Inventory Management, and Khaata, among others. We aim to be the No. 1 neobank in integrated finance in 2 years, our main proposition being customer orientation.

Why choose the MSME sector? Especially when the B2C digital lending space is booming?
Recent industry data has shown that we have around 70 million MSMEs employing over 110 million workers. India’s digital transformation has led to the rise of many entrepreneurial businesses in the non-metro markets, or what we call the real Bharat, which today accounts for over $1,150 million and $1 billion in GDP . According to recent industry reports, the total MSME credit gap in India stands at $375 billion and nearly 95% of this addressable credit demand comes from micro and small enterprises. However, only 14% of total outstanding loans ($800 million) are in the MSME sector. Due to a lack of timely sources of credit from traditional banks, MSMEs have turned to fintech players for their monetary needs. This transformation of MSMEs is evident from the fact that now 72% of payments are made digitally compared to 28% of cash transactions. Traditional banks typically have long processing times, document-heavy processes, and a long gestation period for loan disbursements. So, as more and more MSMEs emerge from the digital market, the potential for Fintechs to contribute to the growth of this sector is immense. The growth of technology, aided by improved infrastructure and supportive government policies, has created an enabling environment for Fintechs. We have therefore built a disruptive integrated finance neobank that provides all banking and financial services tailored to MSMEs.

What are Easy Pay’s unique offers?
We are building a one-app finance ecosystem that can support MSMEs at every stage of their growth journey. We have a built-in credit AI engine that allows us to offer pre-approved loans to all of our merchants, regardless of credit rating. This complete digital journey, from prospect to disbursement, takes 2 hours. This credit AI also helps in making decisions based on credit data by examining alternative data as well as transactional data allowing Easy Pay to understand the creditworthiness of customers and their intention to repay. This helps us reduce the risk of delinquency, making us the preferred partner of choice for NBFCs and banks. We did a POC and disbursed over 1800 loans with 90% of borrowers being new to credit and maintained a 0% default rate thanks to the Credit AI engine. In addition; we offer smart notifications for timely bill payments and bill settlement, and perform business appraisals based on your ongoing transactions, helping organizations plan and strategically accelerate their growth. Easy Pay thus offers 24/7 frictionless digital banking, a sleek and hassle-free experience, and zero-wait service with an extremely high level of focus on engagement and retention. All these features and a host of other apps in the pipeline continue to delight users, which is the testimonial ranking of 4.3 on the play store.

Tell us about Tech @ Easy Pay?
We are constantly leveraging technology not only to improve our services, but also to help us make data-driven decisions, which ultimately helps provide an enjoyable user experience. We have fast onboarding, instant verification, a seamless lead-to-retention user journey, and AI-powered self-help for an immersive experience.

We are also deploying technologies for self-service and assisted services, such as chatbots and virtual relationship manager. Moreover, as an integrated financial Neobank, a robust security interface is a top priority. So we work with best-in-class, through AWS Security Services, who have significantly improved our crisis mitigation and crisis response time. In addition to industry and regulatory perspective, we have also developed our compliance matrix to audit and streamline our data compliance, which helps maintain high compliance standards and mitigate the risk of fraudulent and questionable interference. To improve the performance of the application, it is designed in such a way that the load on the server is minimal for a given request. Each request is categorized into an HTML page request or a data request. This ensures that the server responds to each of these requests individually, reducing the load and blocking time on itself. Thus, data retrieval takes minimum time and at the same time, except for network latency, it delivers the results in less than a second. This ability to distribute the system at a granular level using Spring technologies to ensure that specific functionality with higher load can then be moved to a more sophisticated infrastructure and thus deliver faster results.

We are an ISO 27001 certified company and under which we have defined the requirement for an ISMS – Information Security Management System. In addition to the industry and regulatory perspective, we have also developed our compliance matrix to verify and streamline our data compliance. Technology and innovation have thus enabled us to add additional functionality to our existing product line to ensure convenience and an enjoyable user experience, as well as robust security.

What are the immediate plans for the brand?
We aim to be the trusted friend of MSMEs and are committed to their growth by ensuring financial inclusion. Commercially, we aim to be the #1 choice with 1 million active merchants in 12 months. Besides access to credit, we also want to partner with these MSMEs for all their financial needs to be part of their growth journey as a one stop shop for all their banking and business needs.

How’s the #Easy Pay life going?
Life at Easy Pay is hectic but equally fun as we always find ways to do better! So routine or the standard way of doing things is not the norm at Easy Pay – we love disruption and innovation. When teams work together – there is no delegation, we encourage ownership and teamwork I know most of my employees by name, and I look forward to meeting newcomers and interact with these young minds. We have many workshops, incentive programs and recreational activities like Chess, Zumba or Carrom, to help build a sense of teamwork and trust among employees. We always look for intangibles in a person like – Commitment, perseverance and passion to learn more.

Tell us as the new CEO, what are your responsibilities and main objective?
In my role as co-founder and CEO, I aim to leverage Easy Pay by unlocking the potential of connected banking that will revolutionize accessibility to banking services for over 70 million MSMEs in the country. My vision is to drive the company’s growth and make Easy Pay the largest and fastest neobank for integrated MSME finance in the country. The Fintech sector is at a very exciting time in the digital transformation of the financial sector in the country and with Easy Pay, we are treading this path of growth aligned with the vision of Digital India and the economic progress of the retail sector. which in turn is financially empowering the nation.

About Irene J. O'Donnell

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