This article examines the role of financial technology (FinTech) in addressing the challenges faced by small and medium-sized enterprises (SMEs) in accessing finance. It begins by examining the historical context of financial innovation and its impact on economic growth and stability. The financial crisis of 2007–2008 highlighted the need for alternative financing solutions, leading to the emergence of FinTech as a disruptive force in the banking sector. The article discusses the various barriers to SME finance, including high costs, information asymmetry and lack of collateral, and how FinTech solutions have addressed these challenges. Through the application of digital financial services and innovative business models, FinTech has facilitated faster, easier and cheaper lending and capital raising processes for SMEs. It has also reduced information asymmetry through the use of alternative data sources and advanced analytics. The article also highlights the role of large technology companies in providing digital financial products and services, alongside traditional financial institutions and FinTech startups. In addition, it emphasises the wider impact of FinTech on SMEs, including improving operational efficiency, facilitating international expansion and fostering innovation. Overall, FinTech is presented as a critical enabler of SME growth and economic development in both domestic and international markets.
Pohulak-Żołędowska et al. (Mon,) studied this question.
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