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We have updated our terms and conditions and privacy policy Click "Continue" to accept and continue with ET BFSI ACCEPT THE UPDATED PRIVACY & COOKIE POLICY Dear user, ET BFSI privacy and cookie policy has been updated to align with the new data regulations in European Union. Please review and accept these changes below to continue using the website. You can see our privacy policy & our cookie policy. We use cookies to ensure the best experience for you on our website. If you choose to ignore this message, we'll assume that you are happy to receive all cookies on ET BFSI. * Analytics * Necessary * Newsletter NameProviderExpiryTypePurpose Google AnalyticsGoogle1 YearHTTPSTo track visitors to the site, their origin & behaviour.iBeat AnalyticsIbeat1 YearHTTPSTo track article's statisticsGrowthRx AnalyticsGrowthRx1 YearHTTPSTo track visitors to the site and their behaviour NameProviderExpiryTypePurpose optoutTimes Internet1 YearHTTPSStores the user's cookie consent state for the current domainPHPSESSIDTimes Internet1 dayHTTPSStores user's preferencesaccessCodeTimes Internet2.5 HoursHTTPSTo serve content relevant to a regionpfuuidTimes Internet1 YearHTTPSUniquely identify each userOSTIDTimes Internet1 YearHTTPSOauth secure tokenOSSOIDTimes Internet1 YearHTTPSOauth user identifierOSTPID Times Internet1 YearHTTPSused to sync accross portalsfpidTimes Internet1 YearHTTPSBrowser Fingerprinting to uniquely identify client browsers NamePurpose Daily NewsletterReceive daily list of important newsPromo MailersReceive information about events, industry, etc. I've read & accepted the terms and conditions NEWS SITES * Auto News * Retail News * Health News * Telecom News * Energy News * CIO News * Real Estate News * Brand Equity * CFO News * IT Security News * Government News * Hospitality News * HR News * Legal News * ET TravelWorld News * Infra News * B2B News * CIOSEA News * HRSEA News * HRME News Upcoming Event: CFO Meet & discussion on Revised Companies Act Sign in/Sign up * Follow us: * * * * * * * ETBFSI Exclusive * BANKING * INSURANCE * InsurTech * NBFC * FINTECH * Payments * Digital Lending * RegTech * Open API * BFSI Videos * Editor's View * Brand Solutions * ETBFSI CXO CONCLAVE Connecting Financial Institutions Digitally * LAY THE GROUNDWORK TO ACCELERATE BANKING INNOVATION * ETBFSI FINNEXT SUMMIT The Future of NBFCs and FinTechs * SIDBI-ET MSMES/STARTUPS Roudtable Discussion * REIMAGINE NEXT * LEARNFEST * REIMAGINE NEXT - THE FUTURE OF LEARNING * ETBFSI.COM CONVERGE BFSI: The world of Hyper-personalization * ETBFSI EXCELLENCE AWARDS 2021 AWARDS FOR EXCELLENCE IN INNOVATION * FUTURE READY SECURITY FOR DIGITAL-FIRST BFSI * 3RD EDITION OF ETBFSI CXO CONCLAVE Unlocking the BFSI Potential * THE DIGITAL NEXT: SERIES 2.1 Live Virtual Summit * JOIN THE ECONOMIC TIMES FINANCIAL INCLUSION SUMMIT 2021 * 2ND EDITION OF ETBFSI VIRTUAL SUMMIT 2021 * ET BANKING LEADERSHIP SERIES PRESENTED BY MANIPAL ACADEMY * Millennial Finance * FinTech Diary * BFSI Tech Tales * Green Finance * IBC * ETBFSI Explains * BFSI Movement * More * Blogs * Innovation Masters * POLICY * FINANCIAL SERVICES x * BFSI News * Latest BFSI News * Fintech EXCLUSIVE WHAT ARE EXPENSE CARDS AND HOW ARE THEY HELPING SMES? Most SMEs focus on large expenses such as rent, payroll, cost of goods, etc, and overlook smaller items such as utilities, insurance, internet, etc. Expense cards are prepaid, debit, or occasionally credit cards for business expenses that give companies new levels of control over spending. In this week's Explainer, ETBFSI spoke to two FinTech companies who shared insights on expense cards, their functionality, challenges they address, and how they are helping SMEs. * ETBFSI * August 16, 2022, 08:00 IST * * * * * * * * ~ Anushka Sengupta SMEs are primarily known as the ‘missing middle’ due to the lack of their credit history and limited financial services available to them. For such businesses, a primary obstacle is their credit score, which makes it a challenge to get a corporate credit card with a decent limit. On the other hand, an expense card eliminates all these issues and offers spending limits based on the money uploaded to the card, said Kumar Shekhar, VP-Member Operations, Tide India. Corporate expense cards are prepaid, debit, or occasionally credit cards for business expenses that give companies new levels of control over spending. Every business wants to create a business process that’s streamlined and made easier for a smoother workflow. This not just benefits the business in the long run but also creates better work processes for the employees. The larger problem companies face is managing business finances especially when it comes to business spending. Manually tracking the outgoing transactions is something that’s not just time-consuming but involves a longer finance process. Corporate expense cards can reduce the time spent in manually tracking expenses since these are linked to an online account that automatically tracks expenses and categorizes them accordingly, said Anish Achuthan, Co-Founder and CEO of Open Financial Technologies Pvt. Ltd. Anish believes that expense cards are a must-have for the smooth running of teams, helping the organization scale up, letting go of its legacy processes, and increasing productivity internally. Expense cards help SMEs boost productivity SMEs face critical challenges like managing and reconciling expenses, non-compliant expense reports, privacy and security issues, etc. To address this, an expense card is a one-stop solution for all small and medium business owners, which will help them manage and monitor their expenses efficiently. Keeping track of the company’s spending also makes tax time much easier as many costs may be written off. Regular expense tracking and monitoring decrease the likelihood of overlooking possible tax deductions. As a result, MSMEs have to pay less in taxes, which saves them significant unnecessary expenses, said Kumar. Most SMEs focus on large expenses such as rent, payroll, cost of goods, etc, and overlook smaller items such as utilities, insurance, internet, etc. A non-streamlined expense management solution pushes an employee into a cobweb of organisational procedures thereby giving them lesser time to focus on the larger tasks at hand. Businesses are always looking for ways to create efficient processes that lead to optimising every function. Hence, they are always on the lookout for solutions that contribute to this mission, said Anish. If businesses are supported with the necessary tools, monitoring their spending is far less painful. These resources also help in building everyday cost tracking habits for businesses, which in turn enables them to keep a closer watch on the smaller corporate expenses. Further, with time and effort saved on spend management and manual reconciliation, there will also be a visible impact on the top line and profitability. Since we are on a mission to solve the business banking problems that small business owners face we often interact with them to understand the problems they face to optimize and create solutions that can help them. Through these conversations we’ve learned that entrepreneurs often complain about not being able to spend more time on the more operational aspects of their business and managing cash flows, he added. SMEs in India heavily rely on cash when it comes to expense management and then reconciliation. This remains the key challenge to adoption, additionally, financial instrument awareness and education continue to be other challenges. They are also concerned about security especially when it comes to their funds. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Fintech kumar shekhar anish achuthan india Tide Open finance expense cards etbfsi explains cards Read on App Read on App PEOPLE WHO READ THIS ALSO READ * Two-thirds of transactions on Google Pay happen from 3 lakh villages: Deeksha Kaushal * Bank Holidays in September 2022 : Here's the full list * 'Will not dampen festive spirit': FinTech leaders on new RBI digital lending guidelines * How will the new digital lending guidelines by the RBI affect the industry and curb fraud? SUBSCRIBE TO OUR NEWSLETTER 50000+ Industry Leaders read it everyday I have read Privacy Policy and Terms & Conditions and agree to receive newsletters and other communications on this email ID. FINTECH * 5 hrs ago PAYTM FOUNDER GETS NEARLY 100% VOTES TO REMAIN MD * 22 hrs ago US AGENCY HITS 5 CRYPTO FIRMS WITH CEASE AND DESIST OVER 'FALSE' CLAIMS * 22 hrs ago THE SOCIAL ASPECTS AND SENSE OF COMMUNITY ARE THE CRYPTO MARKET'S BIGGEST ALLURE AND ITS BIGGEST DANGER, EXPERTS SAY * 22 hrs ago ETHEREUM OVERHAUL RISKS CREATING A NEW CLASS OF CRYPTO KINGPINS View More EDITOR'S PICK * 1 hr ago INFLATION REMAINS ‘UNACCEPTABLY AND UNCOMFORTABLY’ HIGH: RBI GOVERNOR * 1 hr ago ‘EMPHASIS ONLY ON COMPLIANCE CAN HAVE IMPLICATIONS FOR BANK SOUNDNESS,’ SAYS RBI STUDY * 4 hrs ago ASSET QUALITY OF NBFC SECTOR DETERIORATED IN Q3FY22: RBI PAPER * 5 hrs ago AFTER POWERFUL QUARTER, BANKS READY FOR STRONG FISCAL AHEAD * 36 mins ago ‘INDIA AND GREEN ECONOMY’: WHAT’S THE CURRENT STATUS, HOW BANKS ARE PLAYING THEIR PART? BFSI VIDEOS * FINTECH DIARY WITH SHACHINDRA NATH, VICE CHAIRMAN AND MANAGING DIRECTOR, U GRO CAPITAL Catch our latest FinTech Diary chat with Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital. * 35 days ago CREDIT GROWTH PICKING UP ACROSS ALL SECTORS; NO DAMPER IN CASE OF RATE HIKES: SHANTI LAL JAIN * 38 days ago FINTECH DIARY WITH NITHIN KAMATH, FOUNDER AND CEO, ZERODHA * 47 days ago INDIAN FINTECHS WILL MOVE TOWARDS 2ND ORDER PRODUCTS IN THE NEXT 3 YEARS, SAYS MADHUSUDHAN R View More EXCLUSIVE INDIAN FINTECH MARKET TO RECORD ‘10 TIMES’ GROWTH; ACHIEVE $1TN IN AUM, $200BN IN REVENUE BY 2030 India is now being recognized as one of the largest FinTech unicorn ecosystems, home to 21 FinTech Unicorns as of March 2022. * ETBFSI Click Here to Read This Story * * * * * * * * Indian Fintech market is expected to record a 10 times growth to achieve $1Tn in Assets Under Management (AUM) and $200Bn in revenue, said the report titled ‘$1 Tn India FinTech Opportunity'. The report released by Chiratae Ventures in collaboration with Ernest and Young (EY), highlighted that much of the growth will be driven by the digital lending market, which is expected to grow to $515 Bn in book size by 2030. The market is expected to reach $1Tn in AUM with contribution from lending to be highest at 50%+, while from a revenue standpoint payments and lending make 75%+ of the pool, the report highlighted. India is now being recognized as one of the largest FinTech unicorn ecosystems, home to 21 FinTech Unicorns as of March 2022. An organic and collaborative ecosystem is driving this growth, which is being supported by key government initiatives, such as Digital India, Smart City, the development of UPI, and other initiatives. Payments, Digital Lending, WealthTech, InsurTech, and Neo-banking will all be contributing to growth in the FinTech space with Agri+FinTech and Prop+FinTech considered to be big bets. Tailwinds due to favorable demographics, growing technology adoption, higher disposable incomes, and aware customer are further fuelling this growth. Fintechs have been innovating in product and delivery to cater to the evolving needs of the customers. The report also highlights that Buy Now Pay Later has become mainstream and is on an accelerated growth trajectory, emerging strong not only in B2C but also in the B2B payments space. On the launch of the report Sudhir Sethi, Founder, and Chairperson, Chiratae Ventures said, “The Indian Fintech market has been a formidable global force, contributing to the largest share of unicorns in India. We have been a technology-first investor believing in the power of both data and technology and hence have backed companies such as EarlySalary, Kristal.ai, PB Fintech, ShopSe, and Vayana amongst others” Co-lending to emerge as a preferred model that supports lending partners in mitigating their risk exposure. New asset classes, Crypto & NFT will also continue to attract investor interest as fintech continues to solve for traditionally underserved customers. Technology-based Innovation on the underwriting side of the insurance value chain will help deliver solutions for the highly unpenetrated market at affordable rates. “FinTechs have innovated for the underserved financial markets through a strong and supportive ecosystem, which will continue to keep accelerating growth and penetration of Fintech in India. These include fast-growing digital adoption and mobile penetration on the back of the cheapest data rates in the world offered by private telecom players, to enabling regulatory environment coupled with world-leading digital infrastructure (Aadhar, UPI, BBPS etc.), and structural reforms and initiatives (GST, TReDSetc.),” said TC Meenakshi Sundaram, Co-Founder and Vice Chairperson, Chiratae Ventures. “We also expect FinTechs to continue solving for the substantial and growing sub-markets with novel solutions,” he added. With 5X growth in the digital tech talent, India has the opportunity to address the global digital skill gap and establish itself as the destination of digital and tech talent. “India is recognized as a strong FinTech hub globally and is increasingly becoming a talent destination for fintech businesses. We are glad to partner with Chiratae Ventures and delve into the emerging trends in regulatory innovation, technology advancements, new business models, industry convergence, and inclusive digital financial services in the Indian fintech space,” said Rajiv Memani, Chairman and Managing Partner, EY India. The report also highlighted that the regulatory support will enable the industry further as already established models go international through collaborations. The actively encouraging innovation through regulatory sandboxes, new distribution models, and the launch of innovative products has provided a good regulatory environment. 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