FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs
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 ban...
| Main Authors: | , , , , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-08-01
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| Series: | Economies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7099/11/8/213 |
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| author | Shafiq Ur Rehman Mustafa Al-Shaikh Patrick Bernard Washington Ernesto Lee Ziheng Song Ibrahim A. Abu-AlSondos Maha Shehadeh Mahmoud Allahham |
| author_facet | Shafiq Ur Rehman Mustafa Al-Shaikh Patrick Bernard Washington Ernesto Lee Ziheng Song Ibrahim A. Abu-AlSondos Maha Shehadeh Mahmoud Allahham |
| author_sort | Shafiq Ur Rehman |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-10T23:58:55Z |
| format | Article |
| id | doaj.art-126a081648f14f219cdfa894bf17a088 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-10T23:58:55Z |
| publishDate | 2023-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-126a081648f14f219cdfa894bf17a0882023-11-19T00:50:59ZengMDPI AGEconomies2227-70992023-08-0111821310.3390/economies11080213FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEsShafiq Ur Rehman0Mustafa Al-Shaikh1Patrick Bernard Washington2Ernesto Lee3Ziheng Song4Ibrahim A. Abu-AlSondos5Maha Shehadeh6Mahmoud Allahham7School of Finance and Banking, University of Utara Malaysia, Sintok 06010, Kedah, MalaysiaCollege of Business, Zarqa University Jordan, Zarqa P.O. Box 2000, JordanDepartment of Business Administration, Morehouse College, Atlanta, GA 30314, USAData Analytics, School of Engineering and Technology, Miami Dade College, Miami, FL 33132, USASchool of Engineering and Applied Sciences, Columbia University in the City of New York, New York, NY 10027, USAAmerican University in the Emirates (AUE), Dubai 503000, United Arab EmiratesDepartment of Finance and Banking, Applied Science Private University, Al-Arab St. 21, Amman 11931, JordanDepartment of Business Administration, Middle East University, Airport Rd., Amman 11831, JordanBank 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.https://www.mdpi.com/2227-7099/11/8/213financial technology (FinTech)technology adoption theoryloan officermanipulationbank lendingSMEs credit supplies |
| spellingShingle | Shafiq Ur Rehman Mustafa Al-Shaikh Patrick Bernard Washington Ernesto Lee Ziheng Song Ibrahim A. Abu-AlSondos Maha Shehadeh Mahmoud Allahham FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs Economies financial technology (FinTech) technology adoption theory loan officer manipulation bank lending SMEs credit supplies |
| title | FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs |
| title_full | FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs |
| title_fullStr | FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs |
| title_full_unstemmed | FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs |
| title_short | FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs |
| title_sort | fintech adoption in smes and bank credit supplies a study on manufacturing smes |
| topic | financial technology (FinTech) technology adoption theory loan officer manipulation bank lending SMEs credit supplies |
| url | https://www.mdpi.com/2227-7099/11/8/213 |
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