FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs

Shafiq Ur Rehman (), Mustafa Al-Shaikh, Patrick Bernard Washington, Ernesto Lee (), Ziheng Song, Ibrahim A. Abu-AlSondos, Maha Shehadeh and Mahmoud Allahham
Additional contact information
Shafiq Ur Rehman: School of Finance and Banking, University of Utara Malaysia, Sintok 06010, Kedah, Malaysia
Mustafa Al-Shaikh: College of Business, Zarqa University Jordan, Zarqa P.O. Box 2000, Jordan
Patrick Bernard Washington: Department of Business Administration, Morehouse College, Atlanta, GA 30314, USA
Ernesto Lee: Data Analytics, School of Engineering and Technology, Miami Dade College, Miami, FL 33132, USA
Ziheng Song: School of Engineering and Applied Sciences, Columbia University in the City of New York, New York, NY 10027, USA
Ibrahim A. Abu-AlSondos: American University in the Emirates (AUE), Dubai 503000, United Arab Emirates
Maha Shehadeh: Department of Finance and Banking, Applied Science Private University, Al-Arab St. 21, Amman 11931, Jordan
Mahmoud Allahham: Department of Business Administration, Middle East University, Airport Rd., Amman 11831, Jordan

Economies, 2023, vol. 11, issue 8, 1-15

Abstract: Bank lending to SMEs plays a vital role in economic growth, contributing significantly to employment and GDP. Access to bank lending is crucial for small- and medium-sized enterprises (SMEs), as they contribute significantly to global employment and GDP. New financial technologies promise better bank operations, fewer costs, and enhanced credit supply to SMEs. However, there is still a lack of empirical findings on how these technologies can solve demand-side bank lending problems for small- and medium-sized firms. This study gathered data from a sample of 381 respondents, comprising CEOs, managers, officers, loan managers, IT consultants, and other relevant stakeholders. The findings indicate that the adoption of blockchain technologies, as well as the adoption of Big Data technologies encompassing cloud computing, data analytics, algorithms, and programming, along with the adoption of mobile banking technologies, have had a substantial positive impact on bank credit supplies for small- and medium-sized enterprises (SMEs) in Pakistan. This novel study contributes to existing knowledge in two ways. First, it provides knowledge to SMEs looking to adopt new technologies; second, it provides knowledge to a manager looking to finance the SMEs with information asymmetries. This research also provides key findings for researchers and policymakers.

Keywords: financial technology (FinTech); technology adoption theory; loan officer; manipulation; bank lending; SMEs credit supplies (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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