The Future of FinTech: A Paradigm Shift in Small Business Finance

This report examines the transformative potential of financial technology (FinTech) in improving small business finance globally.

(Generated with the help of GPT-4)

The research method involved synthesizing information from industry leaders, academics, finance ministers, central bankers, and editing work led by Daniel Drummer, with contributions from Chahinaze Chalabi, Shailendra Sason, and Bhanu Birla.

(Generated with the help of GPT-4)

FinTech, combining finance and technology, offers significant potential to enhance small business finance. Small and medium-sized enterprises (SMEs) are crucial for economic growth and job creation but often struggle to secure financing. Traditional banking models have been disrupted by the 2007-2008 financial crisis, leading to the emergence of FinTech disruptors. These innovators provide alternative funding through marketplace lending, merchant and e-commerce finance, invoice finance, supply chain finance, and trade finance. The report synthesizes the efforts of industry leaders, academics, and policymakers in addressing SME financing challenges and highlights FinTech's role in bridging the funding gap. It acknowledges the contributions of the World Economic Forum and the Global Agenda Council on the Future of Financing & Capital, and calls for a supportive regulatory environment, availability of data, investor capital, and financial education to ensure FinTech's growth and mitigate associated risks.

(Generated with the help of GPT-4)

Categories: English publication language | Global geographic scope | economy | finance | financial inclusion | fintech | industry | innovation | innovative business | invoice finance | marketplace lending | merchant finance | public institutions | regulatory environment | sme's | sme finance | supply chain finance | technology | trade finance