Fintech Business Models Focus on Financing SMEs in the age of AI

In our paper we discuss the financing situation of SMEs, by analyzing the impact of AI on  the credit market for SME. We identify the financial frictions that exist, their causes, and  possible solutions. In doing so, we consider the framework within all participants in the SME  financial market operate, as well as specific processes on the supply and demand side and  the transactional dimension. Of course, this paper must also consider the regulatory specifics that arise in particular from the use of AI in the lending process. The paper concludes  with recommendations for SMEs, lenders, and regulators/policy makers.