Abstract
With the development of global fintech, open banking policies, as a model that improves the efficiency of financial services through data sharing and technological innovation, have gradually been widely adopted in financial systems around the world. Small and medium-sized enterprises (SMEs), as key pillars of economic growth, benefit significantly from improvements in financing efficiency. However, the effects of open banking policies differ across countries, especially in terms of their impact on the financing efficiency of SMEs, which still requires further exploration. This study conducts a cross-country comparative analysis to examine the impact of open banking policies on SME financing efficiency. It selects five representative countries— the United Kingdom, Germany (representing the European Union), Singapore, Brazil, and India— to analyze the heterogeneous performances in the implementation of open banking. Using regression analysis, the study investigates the impact of key quantitative indicators of open banking policies, such as the volume of data shared, API response time, and API uptime, on loan approval speed, loan cost, rejection rate, and loan default rate. The results show that open banking policies significantly enhance SME financing efficiency in all countries, though the effects vary considerably. The UK and Germany have shown significant improvements in reducing loan default rates, while Singapore, Brazil, and India have enhanced financing efficiency through data sharing and API technologies. This study provides valuable insights for global policymakers, suggesting specific pathways to further optimize the open banking framework to boost SME financing efficiency
Published Version
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