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Is FinTech providing effective solutions to Small and Medium Enterprises (SMEs) in ASEAN countries?

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  • Karim, Sitara
  • Naz, Farah
  • Naeem, Muhammad Abubakr
  • Vigne, Samuel A.

Abstract

With the continuous boom of FinTech, the similar features of different platforms provide effective solutions for small and medium enterprises. This study examines whether FinTech offers useful business mechanisms for SMEs in selected ASEAN countries. The ASEAN countries included in the study are Indonesia, Malaysia, Philippine, Singapore, and Thailand. The study employed factor analysis and segregated the FinTech-SME nexus into five factors. The responses of 300 SME owners were collected through interview questionnaires and surveys. We find that new FinTech and SMEs ‘collisions’ (our term for new utilization) during COVID-19 are the most important factors in the growth of FinTech and the strength of SMEs. Further, we utilized the Kruskal–Wallis test to validate our results and for ranking the factors alongside the ASEAN countries. We present useful implications for policymakers, regulatory bodies, ASEAN countries, and SMEs for welcoming FinTech solutions to facilitate digital transactions.

Suggested Citation

  • Karim, Sitara & Naz, Farah & Naeem, Muhammad Abubakr & Vigne, Samuel A., 2022. "Is FinTech providing effective solutions to Small and Medium Enterprises (SMEs) in ASEAN countries?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 335-344.
    • Handle: RePEc:eee:ecanpo:v:75:y:2022:i:c:p:335-344
    DOI: 10.1016/j.eap.2022.05.019
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    Cited by:

    1. Rehman, Mubeen Abdur & Irfan, Muhammad & Naeem, Muhammad Abubakr & Lucey, Brian M. & Karim, Sitara, 2023. "Macro-financial implications of central bank digital currencies," Research in International Business and Finance, Elsevier, vol. 64(C).
    2. Karim, Sitara & Appiah, Michael & Naeem, Muhammad Abubakr & Lucey, Brian M. & Li, Mingxing, 2022. "Modelling the role of institutional quality on carbon emissions in Sub-Saharan African countries," Renewable Energy, Elsevier, vol. 198(C), pages 213-221.
    3. Feng, Wei & Sun, Shujun & Yuan, Hang, 2023. "Research on the efficiency of factor allocation in the pilot free trade zones," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 727-745.
    4. Campanella, Francesco & Serino, Luana & Battisti, Enrico & Giakoumelou, Anastasia & Karasamani, Isabella, 2023. "FinTech in the financial system: Towards a capital-intensive and high competence human capital reality?," Journal of Business Research, Elsevier, vol. 155(PA).
    5. Ullah, Atta & Ullah, Saif & Pinglu, Chen & Khan, Saba, 2023. "Impact of FinTech, governance and environmental taxes on energy transition: Pre-post COVID-19 analysis of belt and road initiative countries," Resources Policy, Elsevier, vol. 85(PA).
    6. An-Chi Wu & Duc-Dinh Kao, 2022. "Mapping the Sustainable Human-Resource Challenges in Southeast Asia’s FinTech Sector," JRFM, MDPI, vol. 15(7), pages 1-26, July.

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