The survey found that platform usage and convenience factors ranked highly among users as important decision-making factors when choosing to finance through online platforms. This includes criteria including the approval rate, customer service quality, speed of receiving funds, complexity of application process, transparency and flexibility of terms such as early repayment and debt rollover. Prior to using digital platforms, many of these MSMEs had turned to traditional banks or family and friends for microfinance loans, however approval rates were only around the mid-to-high 50% range. So, digital platforms that can provide higher approval rates without additional complexity are attractive alternatives for these MSMEs. Overall, the loan values were low, and the primary purpose was to meet working capital or growth requirements, such as payment to suppliers and purchase of raw materials or inventory.

The usage of digital platforms also enhanced financial inclusion and improved financial literacy among MSMEs. This is especially true for micro and sole-operator businesses, many of whom have little formal education and generally felt uncomfortable interacting with banks. Digital finance platforms in a sense helped to smooth the learning curve for these individuals and eased their transition into traditional banking. More than 60% of MSMEs surveyed that use digital finance platforms reported that they began using or increased their usage of savings and checking accounts and 46% reported they began or increased their use of credit products such as overdrafts and loan contracts.

Despite the positive findings, there still exists a large financing gap for MSMEs in developing Asia markets as 80% of respondents noted that digital finance platforms cover less than half of their financing needs. To tap into this opportunity, however, digital finance platforms will have to address some of the lingering challenges faced by MSMEs such as the low levels of digital literacy and difficulty understanding fintech products along with the lack of transparency in borrowing costs.