The impact of digital finance on SME financing

Abstract

This paper examines the impact of digital finance on the financing of small and medium-sized enterprises (SMEs). Digital finance, leveraging technologies like big data and blockchain, addresses traditional SME financing challenges by enhancing information transparency, reducing financing costs, and improving credit assessment efficiency. The study highlights case examples from platforms like Ant Financial and Jingdong Finance, showcasing their role in providing effective solutions. Despite its benefits, digital finance faces issues such as regulatory gaps and risk management. The paper concludes with recommendations to enhance SME financing, including improved risk management, regulatory support, policy incentives, and financial literacy promotion.