Integrated Financial Technology Model on Financing Decision for Small Medium Enterprises Development

Abstract

Access to capital is one of the biggest obstacles for Small Medium Enterprises (SMEs) in Indonesia because SMEs do not have adequate collateral, high-interest costs, and complicated procedures. In this digital era, one form of financing is Peer to Peer Lending, where financial technology (fintech) corporation mediates between investors and SMEs that need capital. This form is more comfortable, faster, and cheaper so that it can be the solution for SMEs to access capital without tangible collateral. However, with information asymmetric, fintech has high potential risks for investors, fintech corporations, and other stakeholders. The research method is reviewing articles related to fintech and SMEs, then determining the research gap, and its limitations. The results showed that integrated fintech between investors, fintech corporation, and SMEs, asymmetric information can be eliminated, more transparent, fairer, and no party is harmed. The integration will also encourage SMEs to develop their businesses better. Thus, asymmetric information can be eliminated, more transparent, fairer, risks can be reduced, and no party is harmed. The integration will also encourage SMEs to develop their businesses better.

Transforming the Finance of Small and Medium Micro Enterprises: Unlocking Growth Through Innovation in Central Lombok District

“…This financial innovation can also help MSMEs get easier and faster access to financing and financing to develop their businesses. Financial innovation can also include creating special financial products that meet the needs of MSMEs, such as microloans with competitive interest rates or special insurance for MSMEs (Mutamimah & Hendar, 2020). MSME financial innovation includes providing training and assistance in using technology in financial transactions and financial reporting, starting with very simple applications.…”

Dampak Teknologi Finansial pada Pembiayaan UKM Studi Bibliometrik Tentang Perkembangan Crowdfunding dan Peer-to-Peer Lending

“…Lembaga keuangan tradisional sering kali mensyaratkan agunan yang besar, yang tidak dimiliki oleh banyak UKM (Iskandar, 2023;Iskandar & Kaltum, 2022;Kurniawan et al, 2023;Legowo et al, 2021;Nugrahanti & Jahja, 2018). Solusi tekfin, seperti platform pinjaman peer-to-peer, telah muncul sebagai alternatif, menawarkan cara-cara yang lebih nyaman, lebih cepat, dan lebih murah bagi UKM untuk mengakses modal tanpa agunan yang nyata (Mutamimah & Hendar, 2020). Kedua, tekfin telah membantu menghilangkan asimetris informasi antara investor, perusahaan tekfin, dan UKM.…”

“…Kedua, tekfin telah membantu menghilangkan asimetris informasi antara investor, perusahaan tekfin, dan UKM. Hal ini menghasilkan ekosistem keuangan yang lebih transparan dan lebih adil, di mana risiko dapat dikurangi, dan tidak ada pihak yang dirugikan (Mutamimah & Hendar, 2020). Ketiga, tekfin juga telah memfasilitasi pengembangan perbankan syariah dan tekfin syariah, khususnya dalam konteks pengembangan UKM (Jaman, 2022;Jaman & Pertiwi, 2023;Suparwata, 2018).…”