FinTech as a key factor in financing SMEs growth in the digital age
FinTech as a key factor in financing SMEs growth in the digital age

Summary/Abstract: This article examines the role of financial technology (FinTech) in addressing the challengesfaced by small and medium-sized enterprises (SMEs) in accessing finance. It begins by examiningthe historical context of financial innovation and its impact on economic growth and stability. Thefinancial crisis of 2007–2008 highlighted the need for alternative financing solutions, leading to theemergence of FinTech as a disruptive force in the banking sector. The article discusses the variousbarriers to SME finance, including high costs, information asymmetry and lack of collateral, andhow FinTech solutions have addressed these challenges. Through the application of digital financialservices and innovative business models, FinTech has facilitated faster, easier and cheaper lendingand capital raising processes for SMEs. It has also reduced information asymmetry through theuse of alternative data sources and advanced analytics. The article also highlights the role of largetechnology companies in providing digital financial products and services, alongside traditionalfinancial institutions and FinTech startups. In addition, it emphasises the wider impact of FinTech onSMEs, including improving operational efficiency, facilitating international expansion and fosteringi nnovation. Overall, FinTech is presented as a critical enabler of SME growth and economicdevelopment in both domestic and international markets.

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