World Economic Forum on how FinTech solutions shape SME financing

4 November, 2015

The Global Agenda Council on the Future of Financing & Capital of the World Economic Forum published a report on how FinTech solutions are shaping the financing of SMEs, through innovative financial products and business models tailored to the needs of small businesses (micro-, small-and mediumsized enterprises). 

Small and medium sized enterprises (SMEs) are often cited as the major driver of economies and a force in job creation,but they still have difficulty securing proper financing to prosper.

The global financial crisis of 2007-2008, coupled with higher regulation and capital costs for loans to SMEs, has made it even more difficult for SMEs to secure financing. However, the financial crisis has also created a plethora of disruptors in the FinTech area (“FinTech”, a contraction of “finance” and “technology”, is defined as the use of technology and innovative business models in financial services) who, with their innovative ways to originate, assess credit risk and fund SME loans, have provided alternative ways for SMEs to secure funding for their growth.

Over the last year, the Global Agenda Council on the Future of Financing & Capital, formed of industry leaders, academics, finance ministers and central bankers, has tackled the question of the lack of financing for SMEs, although ample cash is ready to be deployed.

Click here to access the full report.

Back to News