Integrated Financial Technology Model on Financing Decision for Small Medium Enterprises Development

DOI

10.2991/aebmr.k.200127.025How to use a DOI?

Keywords

Integrated financial technology, financing decision, peer to peer lending

Abstract

Access to capital is one of the biggest obstacles for Small Medium Enterprises (SMEs) in Indonesia because SMEs do not have adequate collateral, high-interest costs, and complicated procedures. In this digital era, one form of financing is Peer to Peer Lending, where financial technology (fintech) corporation mediates between investors and SMEs that need capital. This form is more comfortable, faster, and cheaper so that it can be the solution for SMEs to access capital without tangible collateral. However, with information asymmetric, fintech has high potential risks for investors, fintech corporations, and other stakeholders. The research method is reviewing articles related to fintech and SMEs, then determining the research gap, and its limitations. The results showed that integrated fintech between investors, fintech corporation, and SMEs, asymmetric information can be eliminated, more transparent, fairer, and no party is harmed. The integration will also encourage SMEs to develop their businesses better. Thus, asymmetric information can be eliminated, more transparent, fairer, risks can be reduced, and no party is harmed. The integration will also encourage SMEs to develop their businesses better.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Mutamimah
AU  - Hendar
PY  - 2020
DA  - 2020/01/31
TI  - Integrated Financial Technology Model on Financing Decision for Small Medium Enterprises Development
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 124
EP  - 128
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.025
DO  - 10.2991/aebmr.k.200127.025
ID  - 2020
ER  -