The role of Fintech-enabled microfinance in SME growth and economic resilience: Case studies and lessons learned

Small and medium-sized enterprises (SMEs) are crucial drivers of economic growth, employment, and innovation, particularly in emerging economies. However, many SMEs face significant barriers in accessing traditional financial services, which limits their growth potential and economic resilience. Fintech-enabled microfinance has emerged as a transformative solution, leveraging technology to increase accessibility, affordability, and flexibility of financial services for SMEs. This review explores the role of fintech-driven microfinance in fostering SME growth and resilience, drawing insights from various case studies across different regions. Key fintech applications, such as mobile banking, peer-to-peer lending, and digital credit scoring, have revolutionized the microfinance landscape by reducing operational costs, improving the speed of service delivery, and reaching underserved SMEs in remote and low-income areas. These innovations allow SMEs to access timely capital, manage financial risk, and sustain operations during economic downturns, enhancing their ability to withstand shocks and sustain growth. Case studies, including mobile-based microloans in Kenya, peer-to-peer platforms in Indonesia, and blockchain-enabled lending in India, demonstrate the tangible impacts of fintech in enabling financial inclusion and economic empowerment. The review also discusses the lessons learned, emphasizing the importance of financial literacy, balanced regulatory frameworks, and addressing connectivity challenges to ensure equitable access. While fintech-enabled microfinance offers promising benefits, challenges such as cybersecurity risks, regulatory compliance, and the digital divide remain critical considerations. Overall, the findings suggest that fintech can significantly enhance SME resilience and contribute to more inclusive economic development. Future research and policy efforts should focus on maximizing these benefits while mitigating associated risks, paving the way for sustainable, fintech-driven microfinance models. Keywords: Fintech, Microfinance, SME, Economic Resilience, Review.