An Analysis of Fintech's Function in SME Lending

Abstract

Small and Medium Enterprises (SMEs) are critical to economic growth and employment, yet they face significant challenges in accessing traditional financing. Financial Technology (Fintech) has emerged as a transformative force in addressing these gaps by providing innovative, agile, and scalable lending solutions. This study explores the evolving role of Fintech in SME lending, highlighting its contributions, challenges, and comparative advantages over traditional financial institutions. Through a blend of literature review, data analysis, and critical evaluation, the paper provides insights into how Fintech can shape the future of SME financing.