Digital Innovation Can Improve Financial Access for SMEs

By Naoko Nemoto and Miriam Koreen


This Policy Brief summarizes the small and medium-sized enterprise (SME) credit and equity gap and proposes ways emerging technologies and innovative business models can improve SMEs’ access to financial services and boost long-term economic growth. The measures described are intended to: (1) improve traditional lending using new technology and big data; (2) broaden funding tools, including capital market finance; (3) enhance the consultation function of financial institutions; and (4) design an appropriate regulatory environment for fintech.