d-finance-banking D: Finance & Banking 2633-2299 2633-2302 JournalsPress 10.34257/LJRMB113798UK 113798 Fintech Business Models Focus on Financing SMEs in the age of AI AI-Enabled Credit Scoring for SME Financing WölfleAndré0009-0007-8264-6276 AscúaRubén0000-0003-0226-8273 Germany, Karlsruhe University of Applied Sciences Argentina, National University of Rafaela 26 1 35 59

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.

 Fintech SME financing frictions AI-enabled credit scoring regulatory context. Full Text

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.