This is an excellent report from the World Economic Forum, and it is very telling that they chose SME financing as one of the key topics in the future of finance. The WEF is interested in topics that are important for society but also tries to identify the levers that have the most leverage to “create a better and more stable world”. This is the reason why SME financing is important (SMEs represent 60% of global GDP, both in developed and emerging markets).
On the other hand, I also believe that SMEs are one of the most interesting markets for Fintech – many of them would be unbanked or underbanked, especially in emerging markets, and the financial services offered to SMEs haven’t really evolved for the last 50 years.
In conclusion, the SME market is a good business opportunity for entrepreneurs, and improving finance for SMEs has a clear positive impact for society and the economy. One of the reasons I love Fintech…
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