Fintech and SME Finance : Expanding Responsible Access

This technical note is structured in the following manner. Section two provides an overview of the main barriers and frictions that SMEs face to access finance. Section three explores how digitization is an enabler for SME finance and how different...

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Main Authors:	World Bank, International Finance Corporation
Format:	Technical Note
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	SME ACCESS TO FINANCE FINTECH DIGITAL CREDIT FINTECH ASSET-BASED LENDING FINTECH EQUITY PRODUCTS TOKENIZED ASSETS COVID-19 AND DIGITAL FINANCE SMALL AND MEDIUM ENTERPRISE DIGITAL FINANCE FINTECH REGULATORY RECOMMENDATIONS
Online Access:	http://documents.worldbank.org/curated/en/099735004212257410/P17300606103440d8083ca064c26ca7f8dc http://hdl.handle.net/10986/37355

id	okr-10986-37355
recordtype	oai_dc
spelling	okr-10986-373552022-04-30T05:10:37Z Fintech and SME Finance : Expanding Responsible Access World Bank International Finance Corporation SME ACCESS TO FINANCE FINTECH DIGITAL CREDIT FINTECH ASSET-BASED LENDING FINTECH EQUITY PRODUCTS TOKENIZED ASSETS COVID-19 AND DIGITAL FINANCE SMALL AND MEDIUM ENTERPRISE DIGITAL FINANCE FINTECH REGULATORY RECOMMENDATIONS This technical note is structured in the following manner. Section two provides an overview of the main barriers and frictions that SMEs face to access finance. Section three explores how digitization is an enabler for SME finance and how different fintech solutions address these barriers. The fintech solutions analyzed include digital credit, asset-based lending, and equity products. Also examined are innovative products such as digital payments, credit risk assessment using alternative data, tokenized assets, and electronic invoicing. Market enablers such as e-commerce and open banking, and the digitization of business processes, which contribute to addressing the barriers and frictions to SME access to finance, are also highlighted. Section four analyzes how the providers of these fintech solutions for SMEs impact traditional banks, financial institutions, and implications on the financial market structure. This section also discusses the effects of the COVID-19 pandemic on the use of digital financial products for SMEs. Section five then addresses some of the key risks and challenges involved in the adoption of digital financial products and key market enablers. Finally, section six presents policy and regulatory recommendations to address the different challenges. 2022-04-29T14:41:21Z 2022-04-29T14:41:21Z 2022 Technical Note http://documents.worldbank.org/curated/en/099735004212257410/P17300606103440d8083ca064c26ca7f8dc http://hdl.handle.net/10986/37355 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	SME ACCESS TO FINANCE FINTECH DIGITAL CREDIT FINTECH ASSET-BASED LENDING FINTECH EQUITY PRODUCTS TOKENIZED ASSETS COVID-19 AND DIGITAL FINANCE SMALL AND MEDIUM ENTERPRISE DIGITAL FINANCE FINTECH REGULATORY RECOMMENDATIONS
spellingShingle	SME ACCESS TO FINANCE FINTECH DIGITAL CREDIT FINTECH ASSET-BASED LENDING FINTECH EQUITY PRODUCTS TOKENIZED ASSETS COVID-19 AND DIGITAL FINANCE SMALL AND MEDIUM ENTERPRISE DIGITAL FINANCE FINTECH REGULATORY RECOMMENDATIONS World Bank International Finance Corporation Fintech and SME Finance : Expanding Responsible Access
description	This technical note is structured in the following manner. Section two provides an overview of the main barriers and frictions that SMEs face to access finance. Section three explores how digitization is an enabler for SME finance and how different fintech solutions address these barriers. The fintech solutions analyzed include digital credit, asset-based lending, and equity products. Also examined are innovative products such as digital payments, credit risk assessment using alternative data, tokenized assets, and electronic invoicing. Market enablers such as e-commerce and open banking, and the digitization of business processes, which contribute to addressing the barriers and frictions to SME access to finance, are also highlighted. Section four analyzes how the providers of these fintech solutions for SMEs impact traditional banks, financial institutions, and implications on the financial market structure. This section also discusses the effects of the COVID-19 pandemic on the use of digital financial products for SMEs. Section five then addresses some of the key risks and challenges involved in the adoption of digital financial products and key market enablers. Finally, section six presents policy and regulatory recommendations to address the different challenges.
format	Technical Note
author	World Bank International Finance Corporation
author_facet	World Bank International Finance Corporation
author_sort	World Bank
title	Fintech and SME Finance : Expanding Responsible Access
title_short	Fintech and SME Finance : Expanding Responsible Access
title_full	Fintech and SME Finance : Expanding Responsible Access
title_fullStr	Fintech and SME Finance : Expanding Responsible Access
title_full_unstemmed	Fintech and SME Finance : Expanding Responsible Access
title_sort	fintech and sme finance : expanding responsible access
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099735004212257410/P17300606103440d8083ca064c26ca7f8dc http://hdl.handle.net/10986/37355
_version_	1764487004197748736

Fintech and SME Finance : Expanding Responsible Access

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