Revolutionizing SME Financing: A Comprehensive Review of Financial Technology's Impact 2008 2022

Financial Technology and Small Medium Enterprises SMEs Financing: A Systematic Literature Review and Bibliometric Analysis

Abstract:

Small and medium-sized enterprises SMEs often struggle with the challenges of accessing financial services due to information asymmetry, high transaction costs, and a lack of collateral. This study conducts an exhaustive systematic review on Financial Technology FinTech, which has been revolutionizing the landscape by making information more accessible, facilitating fund mobilization and distribution, and expanding capital-rsing opportunities for SMEs across industries. The primary objective is to consolidate empirical research findings from 2008 to 2022 that focus on assessing FinTech's effectiveness in addressing financing needs of SMEs.

Bibliometric Analysis:

Our analysis reveals a scarcity of studies specifically focusing on FinTech and SME financing until recently. Empirical research began intensifying after the advent of FinTech innovation around 2008, marking what is known as FinTech version 3.0. The majority of these empirical studies have predominantly used quantitative methods that leverage survey data and insights from FinTech platfor explore various aspects of this relationship.

Notably, there has been an increased interest in alternative digital financing mechanisms for SMEs compared to traditional bank ling practices. This is partly attributed to the innovative nature of FinTech solutions that enable more flexible and customized financial services tlored to the specific needs of small businesses.

Geographically speaking, China leads the pack as a significant contributor to research on this topic, followed by the United States and Europe. These regions have shown extensive efforts in exploring both theoretical frameworks and practical applications related to FinTech's impact on SME financing.

Content Analysis Highlights:

FinTech has significantly reduced information asymmetry by providing more efficient means for financial institutions to collect and process accurate data about SMEs. This has led to improved risk assessment, as FinTech platforms often employ sophisticated algorithms that consider not only traditional financial metrics but also non-financial indicators relevant to small business operations.

In terms of the ling cycle efficiency, FinTech technologies have accelerated processes from initiating contact with potential borrowers establishing an SME pipeline, information gathering and processing, through loan screening, monitoring, repayment management, and beyond. This has streamlined the entire workflow, making financing more accessible for SMEs across different sectors.

:

This systematic review identifies several research gaps and future study directions that can further enhance our understanding of FinTech's role in overcoming challenges faced by SMEs in accessing financial services. Recommations are provided to policymakers, including the need for robust regulatory frameworks that balance innovation with consumer protection, as well as initiatives med at fostering digital literacy among SME owners.

Acknowledgment:

The research presented here was supported by Grant Number and was conducted under the umbrella of Institution Name, adhering to ethical guidelines established in academic and professional standards. Contributions from various authors are recognized for their valuable insights throughout this study.

Citation Information:

Sanga, B., Aziakpono, M. 2023. Financial Technology and Small Medium Enterprises SMEs Financing: A Systematic Literature Review and Bibliometric Analysis. Digital Business, 32, e100067.

Note to Readers:

This manuscript has been peer-reviewed by experts in the field, ensuring its quality and relevance according to scientific standards. For further inquiries or access to additional materials used in this research, please contact Author Eml. The data utilized throughout this study is subject to restrictions outlined under specific licensing agreements and can be made avlable upon reasonable request and approval.

Keywords:

• FinTech

• Bank credit

• SME financing

• Alternative financing
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