Change is inevitable in the world of business, and to attain success, organisations must constantly adapt to changing circumstances and evolving customer expectations. With the pandemic, the pace of change has only accelerated. Businesses and customers have been forced to work remotely, re-prioritise health and safety, transact digitally, and quickly adapt technology to stay relevant.

Financial services institutions have had to move rapidly to keep up with expressed and latent customer expectations. We, at Tata Capital, are reimagining B2B lending every day to not only adopt but to define and create the new normal, with the single objective of supporting Indian businesses in their growth journey.

Let’s take a look at some emerging trends in B2B financing.

Digital but Personal

Today, many legs of the acquisition, sanctioning, disbursal and servicing parts of the customer journey – for e.g. KYC processes, credit assessments, transacting – are digital, while other parts of loan documentation, field verification etc. are still manual. It is expected that this continuing digitisation trend would accelerate the adoption of a digitally-enabled seamless customer experience at a faster pace supported by the penetration of smartphones and growing prevalence of internet services across the country.

However, businesses today expect lenders to customise their offerings as per their specific needs. Off-the-shelf solutions are no longer relevant in the current complex and dynamic business environment. We, at Tata Capital, fulfil these complex customer needs vide our deep understanding of the nuances of the respective businesses, backed by tech-enabled systems and processes.


Automation and streamlining rudimentary processes such as product enquiries, application status tracking, disbursement status, interest certificates, TDS certificates etc., has accrued immense benefits to the customers. Robotic Process Automation at Tata Capital enables customers to gain 24*7 access to the services, resulting in greater transparency, visibility, and the flexibility to resolve their queries at the click of a button. In fact, RPA combined with artificial intelligence and self-learning algorithms has also enabled Tata Capital to make these processes more transparent, error-free, and efficient.

Cash-flow Based Lending

In the last few years, besides upgrading operational workflows and processes, the core foundation of B2B lending is also undergoing a paradigm shift.

Traditionally, financial institutions extended credit facilities based on asset/collateral based models wherein the strength of the balance sheet and collateral value served as the underlying basis for sanctioning loans. However, most small businesses and startups found it difficult to access due to this traditional approach of underwriting. With today’s emerging startup economy and non-linear success stories, lenders like Tata Capital are adopting alternative means of credit underwriting methods e.g. cash flow-based lending, etc.

Cash flow-based lending enables lenders to lend based on the customer’s cash flow. Tata Capital leverages advanced technology integrated with predictive analytics and artificial intelligence to analyse different data points for assessing the borrower’s creditworthiness.

Sarosh Amaria
Managing Director
Tata Capital Financial Services Limited

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