Financial technologies and innovations in SME lending

To improve the economic situation, it is important for any country to develop business, create more products and increase jobs. Therefore, it is necessary to promote small and medium businesses. The biggest problem for them is attracting financial resources. Becouse of this, SME need to have support from the country or from the financial sector.
Commercial banks can make a significant contribution to solve this financial problem of the small and medium businesses. One of the most common ways of financing is bank loans. However, it is quite difficult to compete with big business. That is why the goverment should have small and medium business promotion programs.
Recently it is obvious that the role of financial technologies has been increased. Fintech helps consumer to have easier lives. With their help, the creditworthiness of small and medium enterprises can be assessed in just five minutes and get the desired amount on the account. Fintech industry is becoming one of the priorities for the financial sector in Georgia.
The research consists of an introduction, three chapters and a conclusion-recommendation. The first chapter discusses the ways of traditional lending to small and medium-sized businesses, as well as the role of financial technologies and the challenges posed by the pandemic abroad. In the second chapter of the research, we are talking about the government programs in Georgia, and the offers of commercial banks for small and medium businesses. The third chapter focuses on examples of the use of financial technologies in Georgia and its role in lending to small and medium-sized businesses.