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P2P lending Fintechs and SMEs’ access to finance

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  • Abbasi, Kaleemullah
  • Alam, Ashraful
  • Brohi, Noor Ahmed
  • Brohi, Imtiaz Ali
  • Nasim, Shahzad

Abstract

Given the importance of Small and Medium Enterprises (SMEs) to the economy, we investigate whether peer-to-peer (P2P) lending financial technologies (Fintechs) enhance the SMEs’ access to finance. Using a sample of OECD countries from 2011–2018, our fixed effects model finds that P2P lending Fintechs increase the access to finance for SMEs. We also evidence that institutional quality positively moderates the association between P2P lending Fintechs and SMEs’ access to finance. Our results suggest that SME managers may meet the liquidity needs of their firms through the use of P2P lending Fintechs.

Suggested Citation

  • Abbasi, Kaleemullah & Alam, Ashraful & Brohi, Noor Ahmed & Brohi, Imtiaz Ali & Nasim, Shahzad, 2021. "P2P lending Fintechs and SMEs’ access to finance," Economics Letters, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:ecolet:v:204:y:2021:i:c:s0165176521001671
    DOI: 10.1016/j.econlet.2021.109890
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    References listed on IDEAS

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    1. Verma, Sushma & Shome, Samik & Hassan, M. Kabir, 2023. "FinTech in small and medium enterprises (SMEs): A review and future research agenda," European Management Journal, Elsevier, vol. 41(6), pages 950-971.
    2. Adugna, Hailu, 2024. "Fintech dividend: How would digital financial services impact income inequality across countries?," Technology in Society, Elsevier, vol. 77(C).
    3. Yang, Lihong & Wang, Shixun, 2022. "Do fintech applications promote regional innovation efficiency? Empirical evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    4. Fuzhen Gu & Junguang Gao & Xiaoya Zhu & Jiamin Ye, 2023. "The impact of digital inclusive finance on SMEs’ technological innovation activities—Empirical analysis based on the data of new third board enterprises," PLOS ONE, Public Library of Science, vol. 18(11), pages 1-21, November.
    5. Qihang Xue & Caiquan Bai & Weiwei Xiao, 2022. "Fintech and corporate green technology innovation: Impacts and mechanisms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3898-3914, December.
    6. Alam, Ashraful & Banna, Hasanul & Roni, Naheed Nawazesh & Abedin, Mohammad Zoynul, 2025. "Sowing Sustainability: How does fintech mitigate agricultural financial risk from climate change vulnerability," International Review of Economics & Finance, Elsevier, vol. 101(C).
    7. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    8. Wang, Yao & Wu, Xuenan & Lin, Boqiang, 2025. "Empowering green households: How does digital finance influence household carbon footprints?," Research in International Business and Finance, Elsevier, vol. 76(C).

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