The effect of fintech on banks’ credit provision to SMEs: Evidence from China

This study examines the impact of financial technology (fintech) on the ability of banks to offer credit to small and medium enterprises (SMEs). By analyzing the lending records of banks in Chinese provinces from 2011 to 2018, we demonstrate that fintech effectively facilitates the banking sector's credit supply to SMEs. We also consider whether the impact of fintech varies according to the size of the bank. Compared with small banks, fintech has a more significant influence on the increase in credit for SMEs in large banks. Thus, maybe it is more important to utilize fintech than to develop many small banks.