The impact of fintech on the financing constraints of SMEs

With the rapid rise of fintech, the financing of small and medium-sized enterprises is facing profound changes. This paper reviews the literature on the impact of fintech on the financing constraints of small and medium-sized enterprises. In the traditional financial system, SMEs often face problems such as information asymmetry, high financing costs and limited access to finance. However, with the introduction of fintech, financing efficiency has been improved, costs have been reduced, and access to financing has become wider. Intelligent technology and data-driven risk assessment also provide SMEs with more accurate and real-time financing support. That said, some potential challenges have also been pointed out in the literature, including increasing information security and the digital divide. This review aims to provide a foundation for further research to more fully understand the role of fintech in SME finance, while providing practical guidance to relevant stakeholders.