Fintech and large banks for SME financing: Evidence from China
Lei Ming
College of Finance and Statistics, Hunan University, Changsha, China
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Search for more papers by this authorYifan Wu
Center for Economics, Finance and Management Studies, Hunan University, Changsha, China
Search for more papers by this authorShenggang Yang
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Business School, Hunan University, Changsha, China
Search for more papers by this authorCorresponding Author
Xiaolin Yang
College of Finance and Statistics, Hunan University, Changsha, China
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Correspondence
Xiaolin Yang, College of Finance and Statistics, Hunan University, Changsha, China.
Email: [email protected]
Search for more papers by this authorLei Ming
College of Finance and Statistics, Hunan University, Changsha, China
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Search for more papers by this authorYifan Wu
Center for Economics, Finance and Management Studies, Hunan University, Changsha, China
Search for more papers by this authorShenggang Yang
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Business School, Hunan University, Changsha, China
Search for more papers by this authorCorresponding Author
Xiaolin Yang
College of Finance and Statistics, Hunan University, Changsha, China
Financial Development and Credit Management Research Center of, Hunan University, Changsha, China
Correspondence
Xiaolin Yang, College of Finance and Statistics, Hunan University, Changsha, China.
Email: [email protected]
Search for more papers by this authorAbstract
In this paper, we adopt a mixed-methods approach that combines case studies and fuzzy-set qualitative comparative analysis (fsQCA) to analyse the collaborative efforts of financial technology (fintech) and large banks in mitigating small and medium-sized enterprise (SME) financing problems. The findings demonstrate that fintech has challenged the traditional lending structure of “large bank–large firms, small bank–small firms” by reducing information asymmetry between banks and enterprises and enhancing technological capabilities. The inherent advantages of large banks, including economies of scale, risk diversification, and talent attraction, can accelerate fintech's role in promoting inclusive finance for SMEs. Overall, our results underscore the importance of fintech applications and the active involvement of large banks in addressing SME financing challenges.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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