While technology will surely improve the transactional processes, provide analytical solutions for decision support systems at the desired scale, and reduce the operational expenses, conceptualizing large-scale financing to agriculture as “value chain financing”, across a spectrum of stakeholders to create vertically-integrated supply chains feeding high-value urban markets and export markets in tandem to smallholder-centricity, ICT enablement and promoting financial literacy would continue to be the golden rule of Agri-banking in the future. CropIn in association with the Economic Times brings an insightful evening with “The Agri-Innovation Summit”, which will be an ideal platform for financial & digital stakeholders to understand the growing elements of technology and risk management. The summit will encourage strategic planning, cross-fertilization of ideas and networking for value.
☀️ Panel Discussion: How will Next Generation AgriTech enable FinTech & InsurTech for Smallholder Farmers?
There is an ever-increasing need to invest in agriculture due to a drastic rise in the global population and changing dietary preferences of the growing middle class in emerging markets towards higher-value agricultural products. Estimates suggest that demand for food will increase by 70% by 2050 and at least $80 billion annual investments will be needed to meet this demand, most of which need to come from the private sector. Financial institutions in developing countries contribute a disproportionately low share of their loan portfolios to agriculture compared to the agriculture sector’s share of GDP. On the other hand, the growth and deepening of agriculture finance markets are constrained by a variety of factors which include:
📍 Inadequate or ineffective policies
📍 High logistical costs to reach remote rural populations
📍 The covariance of production, market and price risks
📍 Absence of adequate agri-data & mechanism to monitor and manage risks
📍 Low levels of demand due to fragmentation and incipient development of value chains
📍 Lack of expertise of financial institutions in managing agricultural loan portfolios
From this discussion, we will be able to get a solution to the following questions:
🔸 How will agritech evolve the existing underwriting models and redefine benchmarks?
🔸 Assessing the current lending scenario, what is the outlook on tech-enabled management of delinquencies and NPAs?
🔸 How will predictable agri-data drive synergies for faster claims processing and yield benchmarking to extend the insurance program and cover farmers on a large scale?
🔸 How can agritech drive financial inclusion and progressive digital strategy for the farmer?
🔸 Will digitalization enable ag-alternative credit score for farms, which will accelerate lending high-volume, low-value tickets?
🔸 Do we foresee a future where innovative financial products provide farmers access to early-salary-like a financial product which would guarantee a regular income, similar to what many organizations offer urban, salaried population?
Moderator: Mr. Ajay Kakra, Director - Food & Agriculture, PwC
Panelists:
Mr. Vivek Zakarde, Head - BI & Analytics, Reliance General Insurance
Mr. Dipu K.V, President - Operations, Bajaj Allianz General Insurance
Mr. Shripad Jadhav, VP - Agri & Rural Banking, Kotak Bank
Mr. Sumit Gupta, Senior Group President, Yes Bank
Mr. Suresh, Chief Business Officer, Samunnati Finance
Mr. Jitesh Shah, Chief Revenue Officer, CropIn
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