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5 Ways the Fintech Industry Will Support Farming

The current situation around India’s agriculture is not very pretty, as the country has found itself in a dire state in some regions due to the government’s attitude towards its need for farmers. It’s not clear when the situation is going to stabilize – or how – but it’s interesting to note that the growth of the fintech sector has given local farmers some breathing room, allowing them to stabilize their positions and reorganize their current plans.

1) Easy Loans for Farmers

Borrowing money is a common part of any farming operation in many nations, and India is no exception. Unfortunately, the situation was less than favorable until now, as farmers were forced to go through middlemen and jump through various hoops in order to acquire the funding they needed to operate. That’s not the case nowadays though, mostly thanks to the efforts of the fintech sector to make direct loans more available to everyone.

2) Direct Connections

On that note, farmers now have better opportunities for establishing direct connections with lenders and other institutions that might be important in their operations, as opposed to having to rely on middlemen. This change alone can potentially have a huge impact on the way things work locally, and hopefully it’s a trend that’s going to stabilize even further.

3) Ongoing Payment Model

Instead of having to make large upfront payments for equipment and tools, farmers can now make use of various ongoing payment programs that can introduce a lot of stability in their operations compared to before. By only paying for what they’re truly using, many people now have the ability to organize their finances in a much more efficient manner, skipping some of the problems commonly encountered when dealing with the traditional model.

4) Affordable Financial Services

Financial inclusion in the farming sector has traditionally been low in India and the surrounding region, but that’s no longer the case today, as various financial services are becoming more and more accessible to farmers in the area. Some new companies arriving to the market are even focusing on this aspect specifically, bringing an even greater variety of financial tools and utilities to this corner of the market.

5) Better Insurance

Another problem that’s been prevalent for quite a while but is now starting to get addressed, the availability of proper crop insurance plans for farmers is finally starting to shape up in a more serious manner. Protecting one’s crops against the worst is no longer such a challenging ordeal, although there is still a lot that can be done to improve the situation. The important thing is that things are moving forward in the right direction, and it’s mostly happening thanks to the fintech sector.

Other positive effects can be traced back to fintech as well, although we should probably hold off on the deeper analysis in this regard until the situation has stabilized a little and we’ve had a chance to see some proper results. One thing is clear though – this relationship is a strongly positive one.

 

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Amy Matthews

Amy Matthews

resource Manager

Vibrant, Inc.

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New Jersey

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This post is from a series of posts in the group:

Fintech

Fintech discussions and conversations around the development of fintech.


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