Public Policy, Fintech and SMEs: Recommendations for Promoting a New Financing Ecosystem
| Published Date | August 2022 |
|---|---|
| Type of Publication | Reports |
| Publication Under | SOM Steering Committee on Economic and Technical Cooperation (SCE), Small and Medium Enterprises Working Group (SMEWG) |
| Accessed | 763 |
| Pages | 268 |
| Download publication | Download |
Description
The FinTech sector has been growing rapidly in many APEC economies. Digital financial services have especially grown in popularity as an area of focus for financial interventions over the last few years and exacerbated by the COVID-19 pandemic. FinTech penetration is highest in payment transaction technology, followed by money transfer, remittances, and lending. SMEs have been gradually adopting FinTech offerings, but there is still significant room for improvement. However, FinTech companies have, for the most part, been able to reduce transaction costs for SMEs.
This policy paper aims to provide a state of play on the financial policy and programs enabling FinTech development and mapping them to 12 APEC members and 2 non-APEC members. It provides recommendations that MSME development agencies can integrate in the use of Fintech to facilitate access to financing and access and use of digital financial services for MSMEs and entrepreneurs.