In today’s fast-changing world, one truth is becoming crystal clear: your digital footprint is your new credit history. For decades, MSMEs relied on trust, relationships, and hard work to get credit. A banker would sit across the table, flip through files, maybe even visit the shop or factory, and make a decision. But times are changing rapidly. Now, banks and NBFCs look for something more than just promises that is they look for proof. This proof doesn’t sit in handwritten ledgers anymore. It lives in digital payments, GST returns, invoices, cloud records, and even your business’s Google profile. Digitisation is not just about going modern. It’s about survival. And more than survival, it’s about becoming fundable, trustworthy, and future-ready.
Why Digitisation Matters for MSMEs
Let me ask you this: when was the last time you made a purchase without checking reviews online, or without using a digital payment? Recently only. Even whenever i need to shop or want to know about my child school, books and anything. I straight forward just check for review on googke and then make decision. Now, if customers are already thinking digitally, why should banks be any different? Banks don’t lend on sweat and effort alone, they lend on evidence.
- Digital payments prove your turnover.
- GST filings prove you’re compliant.
- Cloud records prove you’re transparent.
- Online presence proves you’re legitimate.
An MSME with no digital trail looks invisible, no matter how much profit it actually makes.
And invisibility in today’s world means rejection tomorrow.
The Five Pillars of Digitisations
Digitisation may sound big and overwhelming, but in reality, it stands on five simple pillars. Let’s learn them step by step and understand this process:
1. Digital Payments
Cash doesn’t count in your bank’s eyes. Every UPI payment, every QR code swipe, every POS transaction builds a money trail of your business.
Think about it: ₹50,000 cash in your drawer means little. But ₹50,000 recorded digitally becomes a brick in your credibility. Over time, this trail speaks louder than words when you sit in front of a banker.
2. Digital Accounting & Invoicing
A notebook can get lost. Memory can fail. But an app doesn’t. Tools like Zoho Books, ProfitBooks, Vyapar app, or Tally online can give you:
- System-generated invoices.
- Expense tracking.
- GST-ready reports.
For a banker, this means discipline. For you, it means control.
One MSME I met cut his loan processing time in half because his software reports matched his GST returns line by line. The banker didn’t need weeks to verify because trust is instant as everything is matching.
3. Compliance & GST Filing
Here’s a secret from my banker’s desk: bankers quietly check GST history and it’s very easy for them to verify.
- Timely filings = credibility.
- Delays = red flags.
Imagine this. You walk into a bank and say: “Sir, my business is doing well, but cash flow is tight.” The banker nods politely in front of you but later logs into the GST portal and sees three months of pending filings. Loan rejected immediately.
Compliance is silent credibility. It speaks when you don’t.
4. Digital Presence
We live in the age of Google. Even bankers and investors “Google” your business.
- A Google Business Profile proves you exist.
- A simple LinkedIn page shows you’re professional.
- A WhatsApp Business account makes you accessible.
If you’re invisible online, people hesitate to trust you. If you’re visible, half the battle is already won.
5. Digital Records & Cloud
How many times have you struggled to find a file when someone asked for it urgently? Cloud storage, Google Drive, Dropbox, One Drive- These are not fancy tech, they are peace of mind. Just use it and trust me you will feel the difference. An SME I know uploaded all contracts, invoices, and bank docs online. When the banker asked for supporting papers, he sent a link in minutes. And you know what the sanction came in days, not months.
The Banker’s Desk
Here’s the truth from the other side of the table. Two MSMEs. Same turnover. Same business. One brings handwritten ledgers. The other brings digital invoices, GST filings, and neat bank statements. Who do you think the banker funds?
For bankers, digitisation = transparency = trust.
And trust, in finance, is everything.
A Practical Roadmap
If you’re starting from scratch, digitisation can feel overwhelming but it doesn’t have to be. Here’s a 6-month roadmap you can follow step by step:
- Month 1–2: Start accepting UPI and QR code payments.
- Month 3–4: Begin using a basic accounting app.
- Month 5–6: Ensure GST and compliance filings are regular. Organise your documents on cloud. Create a simple Google Business profile.
That’s it. Within 6 months, your MSME will transform from “traditional” to “professional.”
Final Thought
Digitisation isn’t just about bankers, banking, financing or lending. It’s about
- Customers trust businesses with a digital presence.
- Vendors prefer transparent payments.
- Employees value organised payroll.
And tomorrow? Government schemes, subsidies, investors, even large buyers; all will ask for digital trails.
Digitisation is the bridge between survival and growth.
If there’s one lesson to take away, it’s this: cash may run your shop, but digital runs your future. Digitisation builds trust, credibility, and bankability. It doesn’t erase your hard work infact it showcases it. Because in today’s world, your digital footprint is your new credit history.
So start small. But start today. The future belongs to the digitally ready.