The Future of FinTech A Paradigm Shift in Small Business Finance

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.

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