FinTech business models focus on financing SMEs

Rubén Ascúa and André Wölfle

Journal of the International Council for Small Business, 2025, vol. 6, issue 3, 469-481

Abstract: Small and medium-sized enterprises (SMEs) are economically important but are caught in a financing dilemma. Reasons for these financing problems are, among others, information asymmetries. Financial technologies (FinTech), in an intermediary role, could help to solve these information asymmetry problems and in this way solve the financing problems of SMEs. Therefore, FinTech as intermediaries for financing SMEs must develop a unique and enduring business model. Due to less empirical data, we will deductively show some first steps on the way to business model generation for FinTech as a practical guide. We are searching for similarities in the market development of creditworthiness assessment for SMEs, done by FinTech, as we saw it in the past for rating agencies concerning large companies. In particular, we analyze the business model of FinTech in the role of an intermediary in SME financing, with focus on customers, value propositions, key resources, and key activities. Our article contributes a first step in a conceptual but practical outline of business model generation for the ecosystem of FinTech in an intermediary role in solving debt financing restrictions of SMEs. In this overview article, we derive our results from a theoretical point of view but try to contribute meaningful and practical knowledge for all stakeholders in the SME financing system.

Date: 2025
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DOI: 10.1080/26437015.2024.2410843

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