Is 'Fintech' Good for Small Business Borrowers? Impacts on Firm Growth and Customer Satisfaction

Schweitzer, Mark E.; Barkley, Brett

doi:10.26509/frbc-wp-201701

Cited by 18 publications

(8 citation statements)

References 9 publications

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“…A study by Schweitzer and Barkley (2017), based on the same survey, supports the argument that businesses that are rejected by banks turn to P2P lenders. They examine the characteristics of businesses that borrow from online alternative lenders and find them similar to businesses that a bank had rejected.…”

Section: Small and Medium-sized Enterprises And Their Funding Gap Plu...mentioning

confidence: 81%

Small and medium-sized enterprises that borrow from "alternative" lenders in the United Kingdom: who are they?

Sabato¹,

Altman

Andreeva³

2021

JCR

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Access to credit for small and medium-sized enterprises (SMEs) is an important condition of successful economic growth. Lending to SMEs is no longer restricted to banks: many new players (or alternative lenders) are entering the credit market. However, the research has not identified what kind of SMEs choose these alternative lenders. Are they just a random sample from the overall population of SMEs or are they different in some specific respects? Is their credit quality better or worse? This study provides a general overview of the external financing landscape for the UK SMEs and an exploratory analysis of the SME portfolio of one of the alternative lenders in the United Kingdom. The results indicate that clients of the alternative peer-to-peer lender are younger and have more debt, but they also have higher returns than a generic sample of UK SMEs. Their probability of default, as estimated by the SME Z-score, is lower. We conclude that the alternative markets for SME lending may be heterogeneous in terms of risk. At least some alternative lenders have a sound risk level and are attractive to high-quality borrowers. Therefore, they act as a substitute for traditional lending.

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Section: Small and Medium-sized Enterprises And Their Funding Gap Plu...mentioning

confidence: 81%

Small and medium-sized enterprises that borrow from "alternative" lenders in the United Kingdom: who are they?

Sabato¹,

Altman

Andreeva³

2021

JCR

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“…However, progress is also tangible, even in developing countries. While many studies claim that in general bank loans are still dominant financing source (Schweitzer & Barkley, 2017); and considering that literature on innovative digital financing resources is still limited (Hua et al, 2019); some studies already show, that the knowledge and popularity of financing through innovative digital technologies called -fintech (Walden, 2020), which started in 2000 th and progressed after the last global financial crisis of 2008-2009 years, significantly advancing in the last decade (Jakšič & Marinč, 2019;Cornell University, INSEAD, the World Intellectual Property Organization [GII], 2020), and step by step is becoming a trusted and desired credit source for SMEs.…”

Section: Literature Reviewmentioning

confidence: 99%

Promoting Fintech Financing for Sme in S. Caucasian and Baltic States, During the Covid-19 Global Pandemic

Чарая¹,

Chochia

Lashkhi

2021

Business, Management and Economics Engineering

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Purpose – to analyse the digitalization trends in the Central Caucasian (Georgia, Azerbaijan and Armenia) and Baltic States with the aim of reducing a financial gap for the Small and Medium size Enterprises in Georgia, Azerbaijan and Armenia. Research methodology – comparative analysis between Baltic and Caucasian countries are made to analyse the basic positions and farther development opportunities for Georgia, Azerbaijan and Armenia. Findings of the given paper – while SME sector crucially important contributor to employment, diversification and productivity in any country of the world and especially in developing ones, they still face significant credit constraints through traditional credit providing institutions. However, the trend is changing and modern digital technologies from the fintech area are providing new alternatives, which already had been widely used in Baltic, but still are waiting their chance in Georgia, Azerbaijan and Armenia, with different level of progress and readiness. Research limitations – some statistical data does not exist for all six countries or were possible to obtain for different periods of time. Lack of academic literature on fintech in Caucasian countries. Practical implications – It can provide a useful perspective for researchers, academics, investors, investment managers, decision-makers, and scientists. Originality/Value – The paper analyses three advanced European Union member state’s (Lithuania, Latvia and Estonia) fintech positions and perspectives as a model of development for three developing Caucasian states (Georgia, Azerbaijan and Armenia).

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“…Studies show that bank loans are still the dominant source of financial resources (Schweitzer & Barkley, 2017). At the same time, the literature on digital financing mechanisms is still incomplete (Hua et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Fintech on Financial Institutions: The Case of Georgia

Lashkhi¹,

Чарая

Boyarchuk

et al. 2022

TalTech Journal of European Studies

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Using Georgia as an example, this article analyses the fintech ecosystem and the impact of fintech companies on traditional financial institutions. Both qualitative and qualitative research has been carried out for this research. Based on the analysis of Georgian and international financial markets, as well as the qualitative and regressive analysis used in the study, assumptions were made about the impact of fintech companies on traditional financial institutions. Moreover, the study identifies the challenges that hinder the development of the fintech ecosystem in Georgia regarding infrastructure, finance, regulation, and education. This article also reveals several aspects that positively affect the outcome of fintech and the diversification of the Georgian financial market. At the end of the article, the relevant conclusions and applicable recommendations are given.

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Is 'Fintech' Good for Small Business Borrowers? Impacts on Firm Growth and Customer Satisfaction

Cited by 18 publications

References 9 publications

Small and medium-sized enterprises that borrow from "alternative" lenders in the United Kingdom: who are they?

Small and medium-sized enterprises that borrow from "alternative" lenders in the United Kingdom: who are they?

Promoting Fintech Financing for Sme in S. Caucasian and Baltic States, During the Covid-19 Global Pandemic

The Impact of Fintech on Financial Institutions: The Case of Georgia

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