SME FINANCING THROUGH FINTECH: AN ANALYTICAL STUDY OF TRENDS IN NIGERIA AND THE USA

Abstract

In this comprehensive review, we examine the burgeoning influence of Financial Technology (FinTech) on Small and Medium Enterprises' (SMEs) financing, with a focus on comparative trends between Nigeria and the USA. The paper aims to dissect how FinTech innovations have redefined the landscape of SME financing, facilitating enhanced accessibility and efficiency in financial services. Through an extensive literature review that spans academic journals, industry reports, and case studies, this study synthesizes current knowledge on the subject, offering a panoramic view of the FinTech ecosystem and its implications for SMEs in both developed and developing economies. Our analysis reveals that in the USA, FinTech has dramatically transformed SME financing by introducing alternative lending platforms, which provide more agile and less cumbersome financing options than traditional banks. This shift has not only improved the speed of funding but also expanded the availability of capital to a broader range of businesses. Conversely, in Nigeria, FinTech's impact is seen in the democratization of financial services, where mobile money and digital banking platforms have significantly increased SMEs' access to financial resources, overcoming historical barriers such as lack of collateral and banking infrastructure. The paper identifies key factors driving FinTech adoption in SME financing, including regulatory environments, technological advancements, and SMEs' growing demand for flexible financial solutions. It also highlights the challenges and opportunities inherent in leveraging FinTech for economic development and SME growth in both countries.
 Conclusively, the study underscores the transformative potential of FinTech in bridging the financing gap faced by SMEs, while also pointing out the necessity for supportive policies, digital literacy, and infrastructure development to fully harness FinTech's benefits. This review contributes to the ongoing dialogue on FinTech's role in economic empowerment, offering insights that could inform policymakers, practitioners, and researchers interested in the nexus between technology and small business financing.
 Keywords: Internet of Things (IoT), oil industry, efficiency, innovation, sustainability, challenges, strategies, emerging trends, cross-country collaboration, USA, Nigeria..