Fintech platforms in SME’s financing: EU experience and ways of their application in Ukraine

Abstract

The main aim of the given research is to develop an appropriate approach for creation of information FinTech platform with the EU standards compliance mainly for SMEs in order to support innovativeness of SMEs, improve their access to finance and simplify different financial processes. The authors defined the main features of FinTech platforms underlining types of FinTech, its participants and the most influential factors. The main trends of FinTech platforms development in the EU countries, such as the level of investment, impact of EU FinTech platforms on the global scale, features of investments into B2B FinTech, were determined. It was considered that in Ukraine, some positive changes in legislation were adopted, but the challenges like lack of finance, slow adoption of innovations in the financial market, not sufficient clarity of legislation remain among the main constraints for further development of FinTech platforms in Ukraine. The conducted analysis on the level of FinTech types performance by Ukrainian platforms showed only the great share of digital payments and money transfers, while other modern innovative FinTech instruments should not be underestimated for proper FinTech application in Ukraine. For this purpose, the authors have developed the Information Platform on Support for SMEs’ Innovations that consolidates interests of both SMEs and scientists. To determine both the SMEs’ opinion about the necessity of a particular Internet platform for them and the types of services that could be provided by the sme-sci.com platform, the authors conducted a survey in which 374 medium-sized and 380 small businesses took part. The results of the survey that are presented in the article confirm the necessity of the Information Platform on Support for SMEs’ Innovations and demand for it from the SMEs. Finally, the result of the research proves that such a unique informational platform as sme-sci. com that will serve as an interactive field for exchanging ideas and information of both representatives of scientific and business world is of great importance.

Determining factors of the intention to adopt fintech services by micro and small business owners from Chiclayo, Peru

“…The term "fintech" is a portmanteau of "finance" and "technology" (Fortnum, Pollari, Mead, Hughes & Speier, 2017) that has become especially popular in the financial sector (Gai, Qiu & Sun, 2018) as a result of the dramatic transformation that technologies are effecting in the services that financial institutions offer (Ivashchenko et al, 2018). Indeed, fintech services emerge as innovative options that, by availing of the internet and automated data processing (Lee & Shin, 2018) as well as emerging fields such as big data, artificial intelligence, IoT, and cloud computing (Nakashima, 2018), seek to change the way in which financial products have traditionally been offered (Milian, Spinola & De Carvalho, 2019).…”

“…Other platforms that can be useful for the MSE sector are electronic payments, which optimize payment processes and create a financial trail for a company, thus making an indisputable contribution to improving credit rating by allowing financial institutions to verify its income flows through records of sales volumes (Hoder et al, 2016). The payment options provided by these platforms include POS terminals, contactless and digital payments, and QR code payments (Ivashchenko et al, 2018). These solutions, unlike traditional forms of payment, constitute personalized services adapted to the needs of customers, minimizing billing procedures through passwords or biometric authentication (Kang, 2018) and even helping to reduce the risk of theft associated with the use of cash (Urday, Morisaki, & Fasanando, 2018).…”

The Effect of Financial Technology, Company Characteristics and Owner Characteristics on MSME Financial Decisions in Bali Province

“…Fintech can be an alternative financing option that can stimulate business activities in Malaysia. In contrast to Sybirianska et al (2018) which shows that the existence of Fintech lending has not been effectively utilized as an alternative to financing MSMEs in Ukraine. Analysis of the Ukrainian tech market found that more than 60 percent of Fintech lending platforms were launched in the past three years, but their usage has not been maximized.…”

Challenges and Trends of Financial Technology (Fintech): A Systematic Literature Review

“…Fintech requires a large amount of personal data [103], so monitoring the platform is also beneficial for consumer protection [74]. On this basis, the level of data security and infrastructure must be continuously developed [41,43,102,117]. Currently, fintech is also required to collaborate with traditional financial institutions such as banks [31,35].…”

“…Although the idea of P2P lending is not new, it is a product of fintech that is developing in countries such as the USA, China, and Indonesia [4]. The hope is that this business model can help SMEs and individuals to obtain loan capital [43]. However, many illegal fintech loans have emerged due to fintech practices that rely on user trust [30].…”