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

摘要

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.